On Wednesday, the Sensex surged remarkably, breaching the significant milestone of 72,000 points for the first time, registering a monumental rally of 701 points.
Closing the day at 72,038.43, the Sensex witnessed a nearly 1% increase, marking an exceptional high. Simultaneously, the Nifty reached an all-time peak of 21,654.75, surging by 1% or 213 points.
During the day's trade, Ultratech Cement and Hindalco both soared by 4%, contributing to the robust performance of the market. Metal stocks, in particular, exhibited strength with JSW Steel up by 3%, while Tata Steel and Tata Motors registered gains of over 1% and 3%, respectively.
Vinod Nair, Head of Research at Geojit Financial Services, noted the market's bullish momentum, attributing it to the recovery from last week's setbacks. This surge was predominantly fueled by optimistic expectations of early rate cuts by the US Federal Reserve and a global inflation cooldown, along with the traditional Santa Claus rally.
Further enhancing market sentiment was the news of major shipping firms resuming operations in the Red Sea amid ongoing tensions, contributing positively to domestic sentiments.
Rahul Sharma, Head of Technical & Derivative Research at JM Financial Services, observed the return of bullish activity, albeit with a cautious approach following a brief midweek market panic last week. He highlighted the India VIX touching new highs on a multi-month timeframe, hinting at potential volatility approaching the monthly expiry. Sharma also noted the consistent buying by Foreign Institutional Investors (FIIs) in Index options and their sustained long positions in the index futures segment in recent sessions.
(With Agency Inputs)
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