The benchmark indices crossed key milestones on Tuesday after China’s central bank announced a clutch of stimulus measures — but got dragged down by profit booking in FMCG and select banking shares.
While the Sensex breached the 85000 mark for the first time in its history, its broader peer the Nifty touched the 26000 mark as metal stocks caught investor attention after China took steps to boost its economy.
Its decision comes just days after the US Federal Reserve announced a big 50 basis point cut in interest rates. The focus has now shifted to the Reserve Bank of India (RBI), which is also expected to lower borrowing costs by October or December.
With 85000 attained, some experts feel the Sensex is on course to hit the 100000-mark, which could happen later this calendar year or early 2025.
The 30-share gauge jumped 234.62 points or 0.27 per cent to hit an intra-day high of 85163.23, while the Nifty shot up 72.5 points to reach 26011.55.
The gains were, however, shortlived as FMCG and select banking stocks came under selling pressure.
The Sensex closed 14.57 points lower to end at 84914.04, snapping its three-day record-breaking run. At the NSE, the Nifty ended flat, but at a fresh high of 25940.40.
“Despite elevated valuations, the Indian market remains attractive, supported by potential increased foreign inflows and robust monthly Systematic Investment Plan (SIP) contributions. The market appears to be in a “one step back, two steps forward” phase, consistently trading above key moving averages,’’ Vishnu Kant Upadhyay, AVP, research and advisory, at Master Capital Services said.
Upadhyay is of the view the Sensex will reach the 100,000 mark by the first half of next year. ``Investors are advised to adopt a “SIP on DIP” strategy to capitalise on market dips while benefiting from the ongoing bullish trend’’, he added.
Northern Arc
Shares of non-banking financial institution Northern Arc Capital Ltd ended 23 per cent higher in market debut on Tuesday against the issue price of ₹263.
The stock was listed at ₹351, a surge of 33.46 per cent from the issue price on the BSE, and finally ended at ₹323.60, a jump of 23 per cent. At the NSE, it soared 33 per cent to Rs 350 in debut trade.
