Stock markets rise for 4th day; metal, power shares gain ahead of key Fed policy decision

BSE Sensex and Nifty hit record highs, driven by gains in metal, power, and auto shares, amid global optimism.

Benchmark BSE Sensex rose by nearly 286 points to close at a record high while Nifty settled above 24,950 level on Wednesday, extending their winning run to the fourth day on gains in metal, power and select auto shares.

The 30-share BSE Sensex settled higher by 285.94 points or 0.35% at 81,741.34, its all-time closing high, with 20 of its components advancing and 10 ending lower. The index opened higher and jumped 372.64 points or 0.45% to hit an intra-day high of 81,828.04.

The NSE Nifty rose 93.85 points or 0.38% to close at an all-time high of 24,951.15. During the day, it surged 127.3 points or 0.51% to hit a high of 24,969.35.

“The domestic market is attempting to cross above the psychological threshold of 25,000, as subdued Q1FY25 earnings and stretched valuations are curbing the challenge, while positive global trends and sector rotation are supporting the traction,” Vinod Nair, Head of Research, Geojit Financial Services said. Positive global sentiment driven by expectations of an easing interest rate cycle by the U.S. Fed and the RBI in the medium term, owing to benign inflation, ignited the rally, he added.

The market capitalisation of BSE-listed companies jumped to a life-time peak of ₹462.38 lakh crore ($5.52 trillion) on July 31 helped by a four-day rally in benchmark indices, making investors richer by ₹5.45 lakh crore.

Among the Sensex stocks, JSW Steel, Asian Paints, Maruti Suzuki India, NTPC, Adani Ports and Special Economic Zone, Bharti Airtel, ITC and Tech Mahindra were the major gainers.

Maruti Suzuki rose by 2.28% as the auto major reported a 47% jump in its net profit for the June quarter. Reliance Industries, Tata Motors, Infosys, Mahindra and Mahindra, Bajaj Finance and Axis Bank were the laggards.