Mid-day Mood: Benchmark indices pare gains after Nifty hits record high; Sensex up 100 points

After opening at a record high on the back of strong global cues today morning, NSE Nifty 50 fell from the day’s high but was still trading mildly in green. Nifty was up 30 points or 0.15 percent at 22,250 points at 11.30 am, while BSE Sensex was up about 100 points at 73,265. The positive effect of US chipmaker Nvidia is reflected in Indian markets too.

Analysts expect the sentiment in the market to continue to remain positive on the back of rate cut predictions by Fed Vice Chair Jefferson, Nvidia’s stock surge, and India’s projected FY25 GDP growth of 6.5 percent.

Stocks of Reliance Industries and Reliance Jio Financial Services hit new all-time highs, with Jio topping Rs 2 lakh crore in the market cap for the first time.

Fundamental and Technical Views

According to V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, the global bull run in the US is showing no signs of stopping with the rally being led by tech stocks. “Nvidia’s excellent results have sparked a rally in all AI-related tech stocks. This is having its repercussions in the tech stocks in India, too,” he says.

According to Vijaykumar, the steady climb of the Nifty setting records after records is an indication that the buy-on-dips strategy is working and may continue but he added that very soon we are likely to have a days of sharp corrections when DIIs resort to some profit booking and FIIs continue to sell persuaded by the high US bond yields.

Prashant Tapse, Senior VP (Research), Mehta Equities Ltd says that the strategy remains aggressively bullish on Nifty as sentiment, fundamentals, and technical analysis align, with targets set at 22500.

From a technical standpoint, a V-shaped recovery can be seen in the benchmark, curated by across-sector buying emergence in the broader markets and select heavyweights says Sameet Chavan, Head Research, Technical and Derivative – Angel One. “We remain sanguine and would advocate traders to focus more on thematic movers for an outperformance,” Chavan said.

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Sula Vineyards: Shares of Sula Vineyards Limited traded almost a percent higher after global brokerage firm CLSA issued a ‘buy’ call, citing the extension of the Maharashtra Wine Industrial Promotion Scheme (WIPS) as a positive for the company.

Vodafone Idea: Shares of Vodafone Idea gained 8 percent, extending gains for the second day. This rally comes on an announcement that the telecom operator’s  board of directors will meet on February 27 to consider all proposals for raising funds.

Jio Financial Services: Market cap crossed Rs 2 lakh crore for the first time to hit an all-time high after its shares rallied over 35 percent so far in 2024. The stock gained over 8 percent as of 11 am.

Key Nifty gainers
Cipla, Dr Reddy’s, M&M, Wipro, Titan

Key Nifty losers
BPCL, Asian Paints, NTPC, Bharti Airtel, Bajaj Auto

Key Sensex gainers
Titan, Wipro, Sun Pharma, M&M

Key Sensex losers
Bharti Airtel, Asian Paints, NTPC, JSW Steel Power Grid

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