Stock Market Today: Nifty and Sensex settle higher on Monday, near record highs

India’s Nifty and Sensex ended marginally higher on Monday, sitting at record highs.
Nifty and Sensex held the previous week’s upsurge amid India’s growth story and the global rally.
The focus shifts toward Fed Chair Powell and US Nonfarm Payrolls data due later this week.

The Sensex 30 and Nifty 50, India’s key benchmark indices, ended in the green on Monday, having hovered near fresh record highs.

Both Indian indices took cues from mostly positive global stocks, led by Japan’s Nikkei 225 index 40,000 feat.

Nifty and Sensex continued to capitalize on robust India’s Gross Domestic Product (GDP) data and the global stocks rally.

The National Stock Exchange (NSE) Nifty 50 and Bombay Stock Exchange (BSE) Sensex 30 closed about 0.10% on the day near 22,400 and 73,900 respectively, having hit fresh record highs earlier in the session.

Stock market news

The top performers on Nifty on Monday were NTPC, Power Grid, ONGC, BPCL and HGFC Life Insurance. Meanwhile, the top laggards were JSW Steel, Britannia, Eicher Motors, Mahindra & Mahindra and SBI Life Insurance.
Moody's raises India's 2024 GDP growth estimate to 6.8% from 6.1%.
Godrej Properties shares rose 2% on plans to construct a township project in North Bengaluru with a booking value of ₹5,000.
Suzlon, Inox Wind tanked 5% as Centre weighs reverse auctions of wind power.
Paytm fell 3% amid speculations over Paytm Payments Bank license.
India’s manufacturing sector climbed to a five-month high of 56.9 in February on Friday.
The US stock markets closed higher on Friday even as business activity in the US manufacturing sector contracted at an accelerating pace in February, with the ISM Manufacturing PMI dropping to 47.8 from 49.1 in January, missing the market expectation of 49.5 by a wide margin.
On Thursday, the key US Personal Consumption Expenditures (PCE) Price Index increased 0.4% for the month and 2.8% from a year ago, as expected.
Markets are currently pricing in about a 30% chance that the Fed could begin easing rates in May, slightly higher than a 20% chance a week ago, according to the CME FedWatch Tool. For the June meeting, the probability for a rate cut now stands at about 71%, up from roughly 60% seen at the start of the previous week.
India's Gross Domestic Product (GDP) expanded by 8.4% on an annual basis in the third quarter (October-December), as against 7.6% in the previous quarter, data released by the National Statistical Office (NSO) showed Thursday.
It’s a holiday-shortened week for the Indian markets, as they will be closed, in observance of the Mahashivratri festival on Friday. Meanwhile, the main event risks for markets this week will be the US Federal Reserve (Fed) Chair Jerome Powell’s testimony and the all-important US Nonfarm Payrolls data.
Another event of note includes China's National People's Congress (NPC) meeting which could flag new stimulus measures.

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 1996 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 13 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 2016 the government decided to demonetize 500 and 1000 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, 1996 at a base level of 1,000. Its highest recorded level to date is 22,097 achieved on January 15, 2024 (this is being written in Feb 2024). The index first closed above the 10,000 level on October 17, 2017. The Nifty recorded its biggest daily decline on March 23, 2020 during the Covid pandemic, when it fell 1,125 points or 12.37%. The Nifty’s biggest gain in a single day occurred on May 18, 2009, when it rose 651 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.

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