Stock market today: Why did Indian stock market reach its fresh all-time highs today? Explained

Domestic market benchmarks witnessed healthy gains even as top markets in Europe traded lower, following losses in the key US indices, S&P 500 and Nasdaq, due to a 7 per cent fall in Nvidia shares.

Nifty 50 hit its fresh all-time high of 23,754.15, while the Sensex scaled its fresh peak of 78,164.71 during the session on Tuesday, June 25.

Shares of Axis Bank, ICICI Bank and HDFC Bank ended as the top gainers in the Sensex index.

On the flip side, shares of Power Grid, Tata Steel and Asian Paints ended as the top losers in the index.

The Nifty 50 finally closed 183 points, or 0.78 per cent, higher at 23,721.30, while the Sensex ended with a gain of 712 points, or 0.92 per cent, at 78,053.52. Both indices settled at their fresh closing highs.

On the other hand, the mid-and small-cap segments failed to mirror the trend in the benchmarks. The BSE Midcap and Smallcap indices ended 0.26 per cent and 0.03 per cent lower, respectively.

Due to the losses in mid and smallcap indices, the overall market capitalisation (mcap) of BSE-listed firms rose barely to about ₹435.8 lakh crore from nearly ₹435.6 lakh crore in the previous session.

Why did Sensex, Nifty 50 hit a fresh all-time high today?

The biggest reason behind the rise in the benchmark indices on Tuesday was solid gains in the shares of banking heavyweights.

The Nifty Bank index jumped 1.74 per cent, while the Private Bank and PSU Bank indices rose 1.70 per cent and 0.13 per cent respectively. Top banking stocks, including Axis Bank, ICICI Bank, HDFC Bank and SBI rose 1-4 per cent on valuation comfort.

Since banking heavyweights carry significant weight in the benchmark indices, their gains boosted the benchmarks.

“The rally in the market is driven by the large private banking stocks as they are attractively valued at this juncture. PSU banks also look attractive from a valuation perspective,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.

(More to come)

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Published: 25 Jun 2024, 03:31 PM IST