- Nifty 50 extends its longest winning streak since 2020, reaching an intra-day high of 25,130 points.
- IT stocks surge as U.S. rate cut expectations drive sectoral gains, with LTIMindtree up 6.54%.
- Financials struggle, with overall market sentiment cautious ahead of key U.S. inflation and Indian GDP data.
The Indian stock market experienced a mixed session on August 28, 2024, as the Nifty 50 index achieved a new milestone by extending its winning streak to ten consecutive sessions, the longest since October 2020.
The index briefly touched an intra-day record high of 25,130 points before settling at 25,052, driven primarily by gains in the IT sector.
Nifty Hits Record High, IT Stocks Shine as Market Awaits Key Economic Data
Despite the positive movement in IT stocks, the broader market displayed caution. The Midcap Index, which touched a record high earlier in the day, slipped slightly into the red by the close. Financial stocks also faced challenges, with a 0.24% decline overall, although IndusInd Bank managed to rise by 2.35%, buoyed by positive sentiment from CLSA. Investors are now closely monitoring upcoming U.S. inflation data and India’s GDP release, which could significantly influence future market directions.
The IT sector emerged as the session’s strongest performer, supported by expectations of a potential rate cut by the U.S. Federal Reserve. LTIMindtree was the highlight, soaring 6.54% following an upgrade from Kotak Institutional Equities. The Nifty IT index reflected this optimism, closing with significant gains. Conversely, the financial sector struggled, with stocks dipping by 0.24% overall, despite IndusInd Bank’s 2.35% rise.
Mid-cap stocks experienced a volatile day, with the Midcap Index touching a record high before slipping into negative territory by the close. The broader market sentiment was mixed, reflecting investor uncertainty ahead of key economic data releases. Sectors such as FMCG and Financials were the main drags, with companies like Asian Paints and Axis Bank among the top losers in the Nifty index.
As the market continues its upward momentum, investors are cautiously optimistic, with a keen eye on the upcoming U.S. inflation report and India’s GDP figures. These economic indicators are expected to play a crucial role in shaping the market’s direction in the near term, potentially impacting investor sentiment across various sectors.
The Indian stock market’s recent performance highlights both resilience and caution among investors. While IT stocks continue to benefit from global economic trends, the broader market awaits key economic data that will determine the next phase of market movements.
“In investing, what is comfortable is rarely profitable.” — Robert Arnott
