The Indian stock market witnessed a historic day of trading as the BSE Sensex and NSE Nifty soared to new record highs. The 30-share BSE Sensex rose by a staggering 1,720.8 points, or 2.29%, reaching a new peak of 76,795.31. Similarly, the NSE Nifty surged by 498.8 points, or 2.18%, hitting a high of 23,320.20.
The market rally was fueled by expectations of stability in the coalition government at the center and the RBI’s upward revision of its FY25 growth forecast to 7.2%. According to Vinod Nair, Head of Research at Geojit Financial Services, these factors contributed to a broad-based rally in the domestic market, surpassing the previous record high set on exit poll day.
However, the US labor market also showed strength, adding more jobs than expected in May, which could impact the Fed’s decision on interest rates. Market experts suggest that the Fed may not decrease interest rates in the near future, leading to a decline in the market and a strengthening of the dollar.
Looking ahead, important domestic and global economic data will dictate the market outlook. According to Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd, key data points to watch next week include India WPI inflation, China CPI inflation, UK GDP data, US core CPI and CPI data, US PPI data, and the US Fed’s interest rate decision.
In terms of stock recommendations, experts suggest buying Larsen & Toubro and Axis Bank within specific price ranges for potential targets. However, investors are advised to consult with certified experts before making any investment decisions.
Overall, the market outlook remains positive, with the Nifty 50 showing strong recovery and potential for further gains. The global setup, interest rate prospects, and oil prices are all factors contributing to the market’s positive momentum. Investors are encouraged to stay informed and monitor market developments closely for potential opportunities.
