The blue-chip Nifty 50 and Sensex stock indices in India reached record highs on Wednesday thanks to increases in a few Adani group businesses and gains in significant finance stocks.
The Nifty index struggled to break above the barrier last week amid hawkish central bank comments, but it increased by as much as 0.48% to a record high of 18,908.15. S&P BSE Sensex increased 0.47% to a brand-new record high of 63,716.
The midcap index and smallcap index were both hovering near 52-week highs and new records, respectively, while the Sensex had already reached a record high last week.
After announcing plans to finalise their proposed merger on July 1, HDFC and HDFC Bank extended advances across all 13 major sectoral indices.
With a gain of up to 4.6%, Adani Enterprises, the flagship company of the Adani group, led all Nifty gainers.
Compared to the gain in benchmarks when they last reached a record high on December 1, 2022, analysts claim that the current rally is more broadly based.
According to Devarsh Vakil, deputy head of retail research at HDFC Securities, “the percentage of equities above 200-DMA (day moving average) rose beyond 75% in the current rally, which was higher than the reading of 68% in December 2022, when an all-time high of 18,887 was established.
This shows that the current rise, which began in April 2023, has great breadth.