India's Nifty 50 Achieves All-Time High as Local and Global Investors Flood into Stock Market

On Monday, India's Nifty 50 index reached a historic high, driven by a remarkable surge in interest from both local and international investors, briefly surpassing the significant 20,000-point milestone for the very first time.

The blue-chip Nifty 50 surged by up to 0.95% to reach 20,008.15, primarily driven by gains in financial, automotive, and metal stocks. Simultaneously, the S&P BSE Sensex settled 0.79% higher at 67,127.08.

Domestically focused small-cap and mid-cap stocks, represented by NIFSMCP100 and NIFMDCP100 respectively, continued to outperform the blue-chip stocks, rising by 1.14% and 1.33%, respectively, and marking new record highs.

Dhiraj Relli, Managing Director and Chief Executive at HDFC Securities, commented, "Nifty has finally achieved the highly anticipated 20,000 mark in its second attempt since July 2023. This landmark was made possible thanks to robust investment flows from local investors."

Among the major sectoral indexes, twelve out of thirteen ended the day with gains. Leading the pack were heavyweight financial stocks represented by .NIFTYFIN, which recorded a 0.83% rise. This increase built upon the positive momentum generated on Friday following the Reserve Bank of India's announcement that it would discontinue the maintenance of the incremental cash reserve ratio.

Investors are now eagerly awaiting the release of India's retail inflation data for August and industrial output figures for July, scheduled for Tuesday. According to a Reuters poll of economists, retail inflation is expected to have eased in August from its 15-month high in July, likely coming in at 7%.

In the realm of individual stocks, Adani Group stocks experienced gains ranging from 1.3% to 8%. This surge followed the news that promoters had increased their holdings in Adani Enterprises (ADEL.NS) and Adani Ports and Special Economic Zone (APSE.NS), with both companies ranking among the top gainers in the Nifty 50.

Apollo Hospitals (APLH.NS) also made significant gains of 2.22% and was among the top gainers in the Nifty. This increase followed a "buy" recommendation from global brokerage UBS, citing healthy demand.

Shares of sugar companies, including Praj Industries (PRAJ.NS), Balrampur Chini Mills (BACH.NS), Dwarikesh Sugar Industries (DWAR.NS), and Dalmia Bharat Sugar and Industries (DLMI.NS), witnessed gains ranging from 1.9% to 15%. This surge was triggered by the launch of a global biofuel alliance at the G20 summit, aimed at promoting the use of cleaner fuels.

Source: Reuters