Stock market today: Sensex, Nifty 50 hit fresh record highs; extend gains into 3rd consecutive session

Stock market today: The Indian stock market benchmarks, Sensex and Nifty 50, rose for the third consecutive session, reaching new record highs on Tuesday, July 16. Despite weak global cues and caution ahead of the Union Budget limiting gains, buying in select heavyweight stocks helped the market move upwards.

Sensex hit its fresh record high of 80,898.3, and the Nifty 50 scaled a fresh peak of 24,661.25 during the session.

The 30-share pack closed 52 points, or 0.06 per cent, higher at 80,716.55, while the Nifty 50 ended at 24,613, up 26 points, or 0.11 per cent. This was also the fresh closing high for both indices.

The domestic market has been on a record-breaking spree in July, driven by optimism about a growth-oriented Union Budget, expectations of healthy Q1 earnings of Indian corporates, and the steady progress of the monsoon.

However, gains have been limited due to concerns over high market valuations. Despite the Nifty 50 being in the green for eight out of the 12 sessions in July so far, it has only risen by 2.5 per cent this month.

Most variables are already discounted in the market, with few fresh triggers. Experts believe it can see a decisive move only after the Budget is presented on July 23.

Investors have been selectively buying shares of certain heavyweights while booking profits in others.

Shares of Bharti Airtel, Infosys, ICICI Bank and Hindustan Unilever emerged as the top movers of the Nifty 50 index. On the flip side, those of Reliance Industries, Kotak Mahindra Bank and NTPC closed as the top drags on the index.

Among the global peers, top European markets were in the red when the Nifty 50 closed amid rising speculations that former US President Donald Trump was leading the presidential election race.

According to a Reuters report, while opinion polls show a close race between Trump and President Joe Biden, the former president is leading in several swing states that may decide the election.

The market finds relief in signals from the US Fed indicating a potential rate cut in its September meeting.

As Reuters reported, Federal Reserve Chair Jerome Powell said at the Economic Club of Washington on Monday that “recent inflation data has strengthened policymakers’ confidence that price pressures are on a sustainable downward path.”(More to come)