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Nifty hits the 19,000 mark for the first time ever

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The benchmark index Nifty has reached a new all-time high trading above the 19,000 mark on Wednesday. The equity market witnessed a record-high trading session as Sensex also hit the 64,000 mark intraday. The previous high of Nifty was recorded back in December when the index hit 18,887.6 last year.

Nifty Midcap 100 and Nifty Smallcap 100 both gained half a percent each. While all indices in Nifty Metals, Nifty PSU Banks, Nifty Auto, Nifty Consumer Durables, and Nifty FMCG traded in the green. The index was inclining towards an all-time high for a few days but was unable to cross the previous mark due to profit bookings at high levels. The reasons for today’s rally could well be the announcement of Tata Tech IPO, announcement of a tentative date for HDFC Bank-HDFC merger, and a rally in US markets.

Nifty and Sensex have jumped 11% and 10% respectively in the previous three months.

Swapnil Shah, the Director of Research at StoxBox reacted to the bull run saying, “Nifty has crossed the previous all-time high and moved beyond the crucial 18,900 levels for the first time in history as market sentiment remained buoyed by the progressive news about the HDFC-HDFC Bank merger and strong current account deficit data for the fourth quarter. Yesterday’s closing in the green of the US markets also supported gains in today’s trading session.”

The renewed interest in the market which is beneficial for the bulls is mainly due to the merger of HDFC twins which is likely to happen on the 1st of July. The surge in HDFC Bank and HDFC is also a good sign for Bank Nifty, as the index will also move higher benefitting from the merger.

The surge in the US stock index also contributed to the high trade in the Asian stock markets. S&P 500 gained 1.14% while Dow Jones Industrial Average ended 0.62% higher. Major companies like Meta Platforms Inc, Apple Inc, and Tesla Inc, led the gains in the market.

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