Indian stocks poised for record highs as Nifty 50 eyes fresh milestone

Stock market news: Benchmark indices, NSE Nifty 50 and S&P BSE Sensex are gearing up to start the day on a positive note, with the benchmark Nifty 50 primed to hit new record highs, driven by sustained domestic investments. While Asian markets show restraint amidst dwindling hopes of a US rate cut, Nifty 50 is set to soar to unprecedented levels.

As of 8:20 am, GIFT Nifty was trading at 22,254, signalling an opening above Tuesday's close of 22,196.95 for the NSE Nifty 50. This surge reflects a remarkable ascent for the blue-chip indexes, Nifty 50 and BSE Sensex, which have witnessed six consecutive sessions of gains, with each session recording an increase of approximately 2.7 per cent. Notably, the Nifty 50 has consecutively marked new all-time highs in the first two sessions of this week.

“Dalal Street continues to set new records, with Nifty reaching an all-time high of 22216 and Sensex surpassing 73000. Fear of missing out reigns as traders seek bargains while Bank Nifty's rise boosts sentiments. Positive catalysts include hopes of a Federal Reserve soft landing in 2024 and anticipation of a strong electoral mandate for the BJP in the 2024 Lok Sabha polls. Wall Street trades negatively, but Nifty bulls remain resilient with technical support at 21,809,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

“Nifty's options data suggests a trading range of 21,800-22,500, with key resistance at 22,600 and support at 22,000. Preferred trades include buying Nifty and Bank Nifty with aggressive targets. Bullish on Deepak Nitrite, SRF, Voltas, and Torrent Pharma, especially on intraday weakness,” he added.

In stark contrast, Asian markets have remained subdued over the past six sessions, maintaining a muted stance today as well. This lackluster performance comes amid waning prospects of an imminent rate cut in the US and a lukewarm response to China's efforts to bolster its struggling property sector.

Despite the recent surge in US inflation figures prompting foreign divestment, domestic institutional investors (DII) have emerged as substantial net buyers, displaying confidence in the Indian market. Out of the 14 sessions conducted thus far in February, DIIs have been net buyers in 12, injecting stocks worth Rs 19,337 crore into the market. Tuesday alone witnessed an infusion of Rs 1,491 crore, according to provisional stock exchange data.

Stocks to watch

• Zee Entertainment Enterprises: Bloomberg reports a $241 million irregularity in the company's accounts as found by India's market regulator.
• Hindalco Industries: The company's US subsidiary, Novelis, has filed for an initial public offering with the US Securities and Exchange Commission.
• Ashok Leyland: The company announces plans to establish a new integrated commercial vehicle plant focusing on green mobility in Uttar Pradesh.
• Whirlpool of India: Parent company Whirlpool (WHR.NS) completes the sale of a 24 per cent stake in its Indian unit for approximately $468 million. Buyers include SBI Mutual Fund, Societe Generale, and Nippon India Mutual Fund.