Sensex, Nifty hit record high as power and financial stock drive market rally

Benchmark stock market indices hit all-time highs just before closing on Wednesday fuelled by a rally in financial and power stocks.
The S&P BSE Sensex added 255.83 points to end at 85,169.87, while the NSE Nifty50 gained 63.75 points to close at 26,004.15.
Vinod Nair, Head of Research, Geojit Financial Services said that after a range-bound trade, the benchmark indices inched higher towards close, led by power and banking stocks, while mid- and small-cap indices experienced corrections driven by valuation concerns.
Among the top gainers on Nifty50, Power Grid Corporation led the pack with an increase of 4.04%, followed by Axis Bank which rose by 2.39%. NTPC also climbed 2.02%, while Bajaj Finserv and Grasim Industries saw gains of 1.59% and 1.55% respectively.
Larsen & Toubro Infotech (L&T Infotech or LTIM) saw the steepest decline, dropping 3.69%. Tech Mahindra also fell by 2.27%. Tata Consumer Products decreased by 1.87%, while Tata Motors dipped by 1.36%. Titan Company rounded out the top losers with a decline of 1.13%.
“The domestic market may face short-term challenges owing to a decline in FIIs inflow and shift of funds to other emerging markets due to their cheap valuation. Meanwhile, gold, as a safe-haven asset, gained further appeal amid escalating tensions in the Middle East and the prospect of lower interest rates,” he added.
The Nifty Midcap100 index experienced a decline of 0.62%. Similarly, the Nifty Smallcap100 index fell by 0.45%. The India VIX, often referred to as the fear index, saw a drop of 7.45%
“The current market levels are a reflection of market fundamentals and liquidity flows. Fundamentally, the markets should deliver 12-15% returns per annum and therefore we expect 18-24 months for markets to get to these levels. However, there is a strong buying momentum in the market that is fueled by strong liquidity. In such a scenario markets can overextend. Which means that we may see the 100k number shortly,” said Vaibhav Porwal, co-founder, Dezerv.
The stock market witnessed gains across several sectors, with Nifty Media topping the list with a 2.83% rise. Nifty Realty also climbed by 0.68%.
Other sectors that saw positive movement included Nifty Metal up 0.46%, Nifty Financial Services 0.38%, Nifty Pharma 0.36%, Nifty Private Bank 0.25%, Nifty Bank 0.19%, and Nifty Healthcare Index 0.04%. Nifty Oil & Gas experienced a marginal increase of 0.05%.
On the other hand, some sectors ended in the red. Nifty PSU Bank recorded the largest drop, falling by 1.91%, followed by a 0.59% decline in Nifty IT. Nifty Consumer Durables slipped by 0.41%, while Nifty FMCG decreased by 0.33%. Nifty Midcap 150 Healthcare was down by 0.30%, and Nifty Auto dipped slightly by 0.07%.