Mumbai: Equity benchmark indices extended their winning streak for the sixth consecutive session on Tuesday, driven by substantial foreign institutional investor buying and a decline in crude oil prices.
Market analysts attribute the positive sentiment to the favorable macroeconomic data from the previous week and optimism following the results of assembly polls in Madhya Pradesh, Rajasthan, and Chhattisgarh, raising hopes for the BJP's continued power at the Centre in 2024.
Investors are also anticipating that the Reserve Bank of India (RBI) will maintain the current interest rate in its upcoming monetary policy decision later this week.
In early trade, the BSE Sensex rose 169.94 points, or 0.25%, reaching a new peak of 69,035.06, while the Nifty climbed 52.60 points, or 0.25%, reaching an all-time high of 20,739.40.
Adani Enterprises and Adani Ports sustained their upward momentum, gaining 4.40% and 4.37%, respectively. Other major gainers included BPCL, Axis Bank, Mahindra and Mahindra, and SBI. Conversely, HCL Tech, Infosys, and Bajaj Auto traded in the negative zone with losses of up to 1.54%.
Of the 30-share benchmark, 20 stocks were trading positively, and among Nifty stocks, 29 registered gains.
Foreign institutional investors purchased shares worth Rs 2,073.21 crore on Monday, reflecting institutional confidence in the Indian market, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He noted a reversal in the selling strategy of Foreign Portfolio Investors (FPIs), who have been consistent buyers for the past seven days. The accumulation is particularly evident in frontline banking stocks, and with short covering and reasonable valuations, this segment is expected to remain strong.
Vijayakumar added that the market has the potential to rise by another 5% in the coming weeks, but beyond that, stretched valuations may invite corrections.
In Asian markets, Hang Seng and Nikkei 225 were trading lower by 1.77% and 1.35%, respectively, while Shanghai Composite was not trading.
European markets closed mixed on Monday, with Germany's DAX up 1.17%, France's CAC 40 climbing 0.30%, and London's FTSE 100 declining 0.06%.
US markets ended on a mixed note, with the S&P 500 registering a loss of 0.54% on Monday.
Global oil benchmark Brent crude slipped 0.01% to USD 78.02 a barrel.
On Monday, the BSE Sensex recorded its highest single-day jump since May 20, 2022, closing at a lifetime high of 68,865.12, with the combined market capitalization of BSE-listed companies reaching an all-time high of Rs 343.48 lakh crore. /BI/
