Stock Market Hits Record High, Sensex Gains 528 Points, Nifty Touches 20,000

Mumbai: The Indian stock market hit a new record high on Monday, with the benchmark Sensex surging by 528 points to close at 67,127.08. The Nifty index also reached an all-time high of 20,008.15, before closing just below the 20,000 mark at 19,996.35.

The strong performance of the stock market was driven by strong buying from domestic investors, as well as positive sentiment following the success of the G20 summit.

Dhiraj Relli, MD & CEO of HDFC Securities Ltd, attributed the milestone to robust investment inflows from local investors, despite mixed or negative flows from foreign investors. He also pointed out that recent achievements in space and foreign diplomacy by India have boosted confidence in Indian stocks, especially in a global environment that remains uncertain.

Among the top performers in the Sensex were Axis Bank, Power Grid, Maruti, State Bank of India, Tata Motors, ITC, Nestle, and Mahindra & Mahindra.

Vinod Nair, Head of Research at Geojit Financial Services, noted that the positive start to the day was influenced by the historic consensus reached at the G20 summit, which bolstered investor confidence. Additionally, higher-than-expected loan growth data, strong profitability, and lower non-performing assets (NPAs) in public sector banks attracted investor interest. Expectations of easing inflation, driven by a decline in vegetable prices, further fueled optimism.

Over the weekend, India achieved a significant diplomatic victory at the G20 summit by overcoming major differences regarding the Russia-Ukraine conflict. Prime Minister Narendra Modi called for an end to the “global trust deficit” and announced the admission of the African Union as a permanent member of the G20.

Asian markets in Seoul and Shanghai ended with gains, while Tokyo and Hong Kong settled lower. European markets were trading positively, and the US markets closed on a positive note on Friday.

Global oil benchmark Brent crude declined slightly to USD 90.35 a barrel.