Stock Market Opening: Sensex Hits 54,500 Points In Early Trade, Nifty Nears 16,300 Level

Some of the reasons behind this peak is the enhanced factory activity which jumped back last month and July trade deficit widened to $11.23 billion from $9.4 billion a month ago.

Stock Markets Loses After Initial Gains | File Image

After hitting a record high for the second day, Sensex on Thursday opened 82.09 points in early trade to touch 54,576.60, while the Nifty 50 crossed 27.40 points and was trading at 16,286.20 in the opening session. However, within minutes both the benchmark indices pared gains to trade flat with a positive bias.

BSE index turned flat, sliding 8.33 points or 0.02 percent to 54,361.44. Of all the stocks, Bank Nifty slipped 0.23 percent. Midcap and smallcap indices also showed sluggishness and traded with losses. Among the top Sensex gainers, Bharti Airtel gained 2.8 percent followed by Tech Mahindra, Asian Paints, Nestle India, and Reliance Industries.

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IndusInd Bank was among the top laggards slipping 1.8 percent followed by ICICI Bank, HDFC, Maruti Suzuki India, and Titan. This week saw equity indices recording lifetime highs as Sensex breached the 54,000-mark for the first time on Wednesday, while the broader NSE Nifty, too, reached an all-time peak of 16,246.85.

On Wednesday, the 30-share index climbed 546.41 points or 1.02 percent to end at 54,369.77 points. The Nifty closed 128.05 points or 0.79 percent higher at 16,258.80. Now, all eyes will be set on the RBI monetary policy review on Friday.

Here's Why The Markets Continue With Record Momentum

Some of the reasons behind this peak are the enhanced factory activity which jumped back last month and the July trade deficit widened to $11.23 billion from $9.4 billion a month ago. Even economists predicted normalisation of activity after Covid-19 restrictions were eased.

Another reason that seems to be impacting market momentum is the IT firms posting better than expected results in the first quarter of the current financial year.

Other than this, tax collections on goods sold and services rendered returned to over Rs 1 lakh crore in July after the second wave of COvid-related restrictions also pushed the markets up. Goods and Services Tax (GST) mop-up grew 33 percent year-on in July.

Moreover, the number of initial public offers to hit the market has also boosted the market sentiments with almost 12 firms have raised a staggering Rs 27,000 crore through IPO. Also, several other IPOs are lined up till the end of this year.