Stock market today: Nifty50 ends above 25,080; BSE Sensex rises 142 points to close at 82,000

Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, extended gains for the sixth straight session on Thursday. Nifty closed 33.20 points higher at 25,083 while BSE Sensex rose for the sixth straight day, settling 142 points higher at 82,000.

Among Sensex firms, Bajaj Finserv, ICICI Bank, Reliance, Bajaj Finance, L&T and BEL were the top gainers, while Power Grid, Eternal, HUL and Adani Ports ended as laggards.

Market analysts maintain an optimistic near-term outlook, citing government policy initiatives and increased consumption as key drivers.

VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “An interesting trend in the market is the steady up move in India in contrast to the down trend in the US. While concerns of potential rising inflation in the US is weighing on the market there, the bold reform initiatives in India and the sustained money flows into the market are imparting resilience to the market. With retail inflation in India remaining much lower than expected ( 1.55 % in July) another rate cut by the MPC is possible soon even though the RBI is cautious in the context of heightened global uncertainty.

“Investors have to be vigilant about valuations in this market. Despite the many headwinds, valuations are high. Out of the BSE 500 stocks, 215 are trading at PEs above 50. Largecap valuations, though high, are justified given India’s long-term growth potential. Many midcaps have the support of strong growth. But small caps are excessively valued and, therefore, risky. Investors have to make this distinction."

Wednesday saw declines in the Nasdaq and S&P 500 as investors shifted from technology stocks to sectors with lower valuations, whilst awaiting Federal Reserve officials' statements at the Jackson Hole symposium.

Gold rates remained unchanged on Thursday as market participants waited for signals regarding Federal Reserve's policy direction before the Jackson Hole symposium in Wyoming commences later today.

Oil prices rose marginally on Thursday following significant reductions in crude oil and fuel stocks in the United States, the largest oil consumer, reinforcing stable demand projections.

Foreign portfolio investors sold shares worth Rs 1,100 crore net on Wednesday. Domestic institutional investors were net purchasers at Rs 1806 crore.

(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)

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