Sensex scales mount 75k, hits fresh intraday high

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The benchmark Sensex hit a fresh high and nudged past the psychological mark of 75,000 on Tuesday before slipping in late trade due to profit booking.

The gauge has taken more than three years for its journey to 75,000 from 50,000 and has zoomed nearly 3x from the lows it hit in March 2020. The combined market capitalisation of shares listed on the BSE hit ₹400 lakh crore for the first time on Monday.

On Tuesday, the 30-share index declined 58 points or 0.08 per cent to settle at 74,683.70 after hitting 75,124 intraday. The Nifty slid 0.1 per cent to 22,642 after making a fresh high earlier in the day. Nifty Bank index also registered a fresh record high at 48,960.

Cash market volumes on the NSE was down to ₹0.89 lakh crore. Broad market indices fell a little more than the Nifty even as the advance decline ratio fell to 0.71:1.

Gainers and losers

Apollo Hospitals and Hindalco were the top Nifty shares with gains of 3.1 per cent and 2.1 per cent, respectively. Titan, down 1.86 per cent, was the top loser. Among sectors, metal index outperformed, rallied over 1 per cent whereas Media index shed over 1 per cent.

Skymet Weather Services said on Tuesday that this year’s southwest monsoon, which lasts from June to September, would likely be normal. The private weather forecasting agency estimates it to be around 102 per cent of the long-term average, with a margin of error of 5 per cent on either side.

FPIs sold shares worth ₹593 crore on Tuesday, while domestic institutions bought shares worth ₹2,257 crore.

Vinod Nair, Head of Research, Geojit Financial Services, said, “Concerns have emerged amidst recent better-than-anticipated US employment and manufacturing data, suggesting a potential shift in expectations regarding rate cuts this year. Moreover, escalating geopolitical tensions in the Middle East, alongside supply concerns, have propelled crude prices upward, impacting overall market sentiment. In the near term, the focus will shift to Q4 earnings, which will kick off this weekend.”

European equities fell in early trading on Tuesday while Asian stocks from Tokyo to Hong Kong closed higher, as investors looked forward to a US inflation report and its impact on interest rate cuts by the US Federal Reserve. Wall Street ended mixed on Monday.

According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, there is no confirmation of any significant top reversal pattern forming at the highs. At the same time, 22750-22800 is expected to be a crucial overhead resistance for the short term, while immediate support is at 22500 levels. A decisive break below this support could trigger short-term downward correction in the market, he said..