The benchmark S&P BSE Sensex and the National Stock Exchange Nifty reached new record highs on Tuesday, driven by a nearly 7 per cent surge in India’s largest passenger carmaker, Maruti Suzuki India (MSIL).
The Sensex peaked at 80,397 before settling at 80,352, marking a gain of 391 points, or 0.5 per cent.
The Nifty 50 closed at 24,433, up 113 points, or 0.5 per cent.
Both indices achieved new highs — both intraday and at closing.
MSIL emerged as the top contributor to Sensex gains following an announcement by the Uttar Pradesh (UP) government of a complete waiver of registration tax on strong hybrid cars. Currently, the UP government imposes an 8 per cent road tax on vehicles under Rs 10 lakh and 10 per cent on those above Rs 10 lakh. The Japanese automobile (auto) manufacturer leads the market in the strong hybrid segment.
Shares of other auto majors like Mahindra & Mahindra (M&M) and Tata Motors also saw gains, despite lacking offerings in the strong hybrid segment.
Strong hybrid vehicles comprise a combustion engine and an electric motor that work together as well as independently of each other.
M&M shares rose 2.7 per cent, while Tata Motors gained 1.2 per cent.
The BSE Auto index surged 2.2 per cent, emerging as the top-performing sectoral index.
Indian equities have been on an upward trajectory since the general election results, buttressed by expectations of policy continuity, stable earnings, and robust macroeconomic indicators.
Since hitting lows on June 4, the Sensex has climbed 14.4 per cent and the Nifty 15 per cent. The Sensex has set new intraday and closing highs in 13 trading sessions.
“Overall, we expect the market to trade with a positive bias, and take their cue from upcoming inflation data, first-quarter (Q1) 2024-25 earnings, and the Union Budget. The pharmaceutical sector is likely to remain focused on comfortable valuations and expected strong earnings growth in Q1,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
Market breadth was mixed, with 1,960 stocks advancing and 1,973 declining on the BSE. The combined market capitalisation of all BSE-listed companies hit a new peak of Rs 451 trillion, or $5.4 trillion.
Looking ahead, domestic and global factors will continue to dictate market momentum. Investors will closely monitor corporate results and US Federal Reserve Chair Jerome Powell’s congressional testimony for insights into US interest rate expectations.
“Currently, consumption sectors such as fast-moving consumer goods and automotive are leading the gains, buoyed by progress in the monsoon and kharif sowing. Investors eagerly await Q1 earnings reports, which will steer market direction. With optimistic revenue growth forecasts, the information technology sector is expected to kick off the season positively. Additionally, sustained positive foreign institutional investor inflows contribute to the prevailing bullish sentiment,” said Vinod Nair, head of retail research at Geojit Financial Services.
First Published: Jul 09 2024 | 7:18 PM IST
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