Thu Sep 12 22:46:53 UTC 2024: ## Indian Shares Soar to Record Highs on Strong Banking and IT Performance

**Mumbai, India** – The Indian stock market surged to record highs on Tuesday, driven by a strong performance in heavyweight banking and IT sectors, amid a volatile trading session. The benchmark Nifty 50 index reached an all-time high of 25,337 points, while the BSE Sensex also scaled new peaks. The Nifty closed 1.7% higher, while the Sensex gained 1.5%.

The market capitalization of all listed companies on the BSE surged by a staggering ₹6.6 lakh crore to reach ₹467.36 lakh crore. This surge was propelled by gains across key sectors, including IT, which rose by 1%, and Nifty Bank, Auto, Financial Services, Healthcare, and Oil & Gas, all of which saw gains exceeding 1%.

Bharti Airtel, Reliance Industries, HDFC Bank, and Infosys were the major contributors to the Sensex rally, collectively adding almost 500 points to the index. Other key contributors to the surge included L&T, M&M, NTPC, ICICI Bank, and SBI.

The positive sentiment in the market was fueled by a slight increase in US consumer prices in August, with core inflation rising by 0.28%, surpassing expectations. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “Latest US inflation numbers are mildly positive for markets. August CPI inflation coming at 0.2% has brought down the 12-month inflation to 2.5% from 2.9% earlier. This paves the way for a rate cut by the Fed in September.”

However, Vijayakumar cautioned that the Fed is likely to be cautious due to persistent core inflation and may opt for a smaller 25bp rate cut instead of a 50bp cut.

The market also benefited from falling oil prices, which dropped over 10% in September due to weak Chinese demand and concerns about global oversupply.

Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Shares and Stock Brokers, attributed the rally to positive Asian markets and a tech-fueled rally on Wall Street overnight. Solanki also highlighted the news of China cutting rates by 50 bps on $5 trillion mortgages this month to boost consumption, which provided a significant boost to market sentiment.

The Indian stock market is poised for further growth in the coming days, driven by strong economic fundamentals and a supportive global environment.

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