Infosys, TCS, Tata Motors, ICICI Bank: These stocks helped Sensex sustain above 80K peak. Check near-term Sensex outlook

Stock market today: The BSE Sensex today achieved a remarkable feat, hitting a new peak of 80,375 after testing the 80,000-level on Wednesday. The 30-stock index extended its rally for the second straight session, a testament to the strong global market sentiments on the US Fed rate cut buzz after the release of minutes of the Fed Reserve meeting. This buzz about a potential interest rate cut by the US Federal Reserve has positively impacted global markets.

The frontline Indian stock market index has set a new record, surging 10,000 points in less than seven months, an impressive feat. The BSE Sensex had touched the 70,000-mark on December 11, 2023. In Thursday's rally on Dalal Street, buying across segments took place, but some of the Sensex-listed stocks were the clear winners. Shares of ICICI Bank, Infosys, Tata Consultancy Services (TCS), HCL Technologies, Tata Motors, NTPC, etc. surged over one per cent in early morning session.

Why has Sensex climbed to a new peak?

Speaking on the outlook for Sensex today, Siddhartha Khemka, Head of Retail Research at Motilal Oswal, said, "Markets continued their ongoing streak of making new highs supported by firm global trends. The Indian stock market cheers the dovish commentary from US Fed Chair Powell. This, along with healthy domestic macros and hope of a growth-focused budget, led to a positive up-move in the Indian stock market today."

On the segments that may continue to fuel Sensex and other frontline indices to new highs, Sandeep Pandey, Founder of Basav Capital, said, “Today we are witnessing buying across segments, but in the long-term, companies that have worked on the expansion of their Capex are going to sustain for long as they will be able to garner cash flow at a discounted price. So, my suggestion is to look at banking, auto, IT, power, and manufacturing segments as they are expected to continue fueling the frontline Indian indices.”

The former Deputy Vice President of HDFC Bank said that IT stocks are expected to maintain an uptrend as the US Fed officials have hinted at signs of recovery in the global economy. Similarly, quality auto stocks are expected to generate alpha returns, or returns that exceed the market's average, as they are linked with the national economy, which is in a clear, sound position these days. He said that banks' NPA has reached its lowest level in the last decade, while the GST collection has reached a record high. The market expects a growth-oriented budget to fill the power and manufacturing segment.

Sensex outlook

Speaking on the critical levels regarding Sensex today, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said, “Sensex today is facing resistance at 80,700 whereas the 30-stock index has crucial support at 78,500 to 79,000 range. If the frontline index breaches above 80,700 on a closing basis, we can expect the key benchmark index to touch 83,000 in the near term. However, if the index fails to breach this hurdle, then the index may correct by 1,000 to 1,500 points ahead of the Union Budget 2024.”

Budget 2024 in focus

"Much would depend upon the Union Budget 2024, expected this month. The market expects a growth-oriented budget, and Prime Minister Narendra Modi has hinted at the economic reforms to scale to a new high in the next five years. So, the market should remain in a range. During Q1 results 2024, a specific approach is advised keeping banking, auto, IT, power, and manufacturing segments in mind," Dongre said.

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