India’s Nifty and Sensex resumed uptrend on Monday following a cautiously optimistic start.
Nifty refreshes an all-time high near 22,src50, Sensex rebounds after turning red in the first hour of trading.
Nifty and Sensex traders brace for a relatively light India’s economic docket and Fed Minutes from the US.
The Sensex 30 and Nifty 50, India’s key benchmark indices, fluctuated between gains in the first hour of trade to swing back higher in Monday’s trading, shrugging off a cautious mood seen in their Asian counterparts. The Indian indices look to extend the previous week’s upward trajectory, led by an upsurge in banks and auto sector stocks and upbeat India’s economic data.
The National Stock Exchange (NSE) Nifty 50 adds 0.50% on the day to test the all-time high of 22,src50. The Bombay Stock Exchange (BSE) Sensex 30 gains 0.44% to keep its range near 72,500.
Chinese markets reopened after a week-long Lunar New Year holiday while the US stock markets are closed on Monday, in observance of Presidents’ Day.
Grasim, Bajaj Auto, Bajaj FinServ, Bajaj Finance Limited and Cipla are the top gainers on the Nifty so far this Monday while losers include SBI Life Insurance, L&T, HDFC Life Insurance, Tata Motors and TCS.
Among the corporate news, shares of Rail Vikas Nigam (RVNL), a railway infrastructure company, soared nearly src2% to ₹28src.30 apiece in early trade on Monday after the company said its order book touched ₹65,000 crore, with 50% of this coming from the railway projects.
Novartis India share price surges nearly srcsrc% to hit a 52-week high as Novartis AG announces sale plans for the company.
India’s trade data for January showed Thursday a shrinking Trade Deficit of $src7.49 billion.
US Consumer Price Index (CPI) and Producer Price Index (PPI) data came in hotter-than-expected and helped push back the market’s expectations of a Fed rate cut from March to June. Markets are currently pricing a 77% chance of a cut in June, the CME Group’s Fed Watch Tool shows.
Attention now turns toward the Minutes of the Fed February meeting due on Wednesday, as the Indian economic calendar remains devoid of any top-tier data release.
Nifty 50 FAQs
What is the Nifty 50?
The Nifty 50, or simply Nifty, is the most commonly followed stock index in India. It was launched in src996 by the National Stock Exchange of India (NSE). It plots the weighted average share price of 50 of the largest Indian corporations, offering investors comprehensive exposure to src3 sectors of the economy. Each corporation’s weighting is based on its “free-float capitalization”, or the value of all its shares readily available for trading.
What factors drive the Nifty 50?
The Nifty is a composite so its value is dependent on the performance of the companies that make up the index, as revealed in their quarterly and annual results. Another factor is government policies, such as when in 20src6 the government decided to demonetize 500 and src000 Rupee banknotes. This led to a temporary cash shortage which negatively impacted the Nifty. The level of interest rates set by the Reserve Bank of India is a further factor as it determines the cost of borrowing. Climate change, pandemics and natural disasters are also drivers.
What are the key milestones for the Nifty 50?
The Nifty 50 was launched on April 22, src996 at a base level of src,000. Its highest recorded level to date is 22,097 achieved on January src5, 2024 (this is being written in Feb 2024). The index first closed above the src0,000 level on October src7, 20src7. The Nifty recorded its biggest daily decline on March 23, 2020 during the Covid pandemic, when it fell src,src25 points or src2.37%. The Nifty’s biggest gain in a single day occurred on May src8, 2009, when it rose 65src points after the results of the Indian elections.
What are some of the major companies in the Nifty 50?
Major corporations in the Nifty 50 include HDFC Bank, Reliance Industries, ICICI Bank, Tata Consultancy Services, Larsen and Toubro, ITC Ltd, Housing Development Finance Corporation Ltd and Kotak Mahendra Bank.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.