Nifty marks new record high; Sensex reclaims 73,000 levels: here is why

Stock market today: Bulls on D-Street regained ground on Friday (February 2), a day after the presentation of the Interim Budget 2024. Sensex at the day’s high notched levels of 73,089.40, scaling over 2 per cent, while Nifty scaled a new all-time high of 22,126.80, up 1.98 per cent over the previous close.

Here are the possible factors that contributed to today’s record gains.

Global markets positive:

After record gains in the overnight trade in the US markets, most Asian markets rose in Friday’s session, with tech-heavy indexes leading the gains. South Korea’s Kospi traded with gains of over 2 per cent, Japan’s Nikkei traded with gains of 0.41 per cent, and Hong Kong’s Hang Seng traded with a minor cut of 0.05 per cent. Nevertheless, bigger gains were put in check as caution prevailed ahead of the key US nonfarm payroll data due later today.

Budget 2024 focussed on long-term growth 

As uncertainty around the Interim Budget 2024 has cleared and focus has been laid on long-term growth through fiscal consolidation along with a thrust on capex, positive sentiment is witnessed in Indian equities today. HSBC lauded the Budget and said that a disciplined Budget adds a positive ripple. Furthermore, it added that the Budget paves the way for stronger macro, supporting equity market sentiment and, thus, an investment case for India.

Heavyweight stocks led rally 

Nifty scaled a new record high, primarily led by gains in heavyweight stocks including Reliance Industries, Infosys, ICICI Bank, and TCS, among others.

Shares of the oil-to-telecom conglomerate marked a new all-time high price today of Rs 2,949.8, logging over 3 per cent gains over the previous close. Banking heavyweight ICICI Bank also got a boost and traded with gains of up to 2.38 per cent.

“The bull market at Dalal Street is thriving, fueled by positive developments such as Wall Street's surge, a 3 per cent drop in WTI oil prices, and the promising Interim Union Budget. With a focus on sectors like consumption, defence, railways, hotels, services, and electronics, the goal of India's $5 trillion economy is in sight,” Prashanth Tapse, Senior VP (Research), Mehta Equities, said.

Technical factors

“Just after reversal from 21,150 levels, Nifty made a fresh record high of 22,126.80 post-Interim Budget, and then we saw sharp profit booking. For further upside in the Nifty Index, it has to close above 22,000 on a weekly basis.

On the flip side, if it doesn’t close above 22,000, then we might see a correction till 21,600–21,700 in the coming few sessions, says Jigar S. Patel, Sr. Manager, Equity Research, Anand Rathi. Further, the expert added that the crucial levels to watch out for on the Nifty are 22,000–22,300 and 21,600–21,700.