Indian stock market at all-time high, bank stocks lead sharp rally

MUMBAI: Driven by the financial sector, the Indian stock market saw a sharp rally to close at an all-time high on Tuesday, with the Bank Nifty index breaking above the resistance of 52,000 for the first time.

The domestic market experienced a financial sector-driven rally on Tuesday, primarily led by private banks, with the Nifty Bank reaching a new high and the Sensex surpassing 78,000.

Sensex closed at 78,053 points, or 712 points up, while Nifty reached 23,721, or 183 points up.

Axis Bank, ICICI Bank, HDFC Bank, Tech Mahindra and L&T were top gainers on the Sensex.

According to market watchers, the Bank Nifty is trading in a strong uptrend with higher highs and higher lows intact on the daily chart.

“The support now stands at 52,000, and intraday dips should be viewed as a buying opportunity for targets of 53,000/53,500,” said Kunal Shah from LKP Securities.

According to market experts, profit booking was evident in sectors such as realty, power, metals and midcaps.

Amid moderate consolidations and sector rotations, the market is moving upwards due to expectations from the upcoming budget.

Additionally, the progress of the monsoon is being watched for insights into the consumption outlook, said experts.

The rupee traded higher by 0.03 at 83.45 against the dollar, showing slight gains as capital markets remained positive with support from the banking and financial sectors and fund flows into these areas.