NIFTY50 hits new all-time peak as ICICI Bank and Bharti Airtel lead

Today, Indian equity benchmark indices began the trading session on a positive note, with the NIFTY50 making a fresh all-time high and SENSEX trading in the green. Similarly, the Nifty Midcap 100 and Smallcap 100 index traded positively in the broader markets. Additionally, Nifty Realty emerged as the top gainer, while Nifty IT was the top loser in the early trading session. The India VIX surged by 1.11%, trading above the 14-mark.

Top triggers for positive market opening

• Hopes are high that the Federal Reserve will start cutting interest rates at its September meeting. The June Consumer Price Index (CPI) fell for the first time on a monthly basis in nearly two years – boosting expectations for an earlier cut.

• Fed Chief Jerome Powell has taken a dovish tone on inflation. Futures traders are pricing in an 89% chance the Fed will cut rates by a quarter-percentage point in September. This is up from 71% one week ago.

• Investors are also seen evaluating the likelihood of another Trump presidency.

On Friday, July 15, 2024, foreign institutional investors (FII) bought shares worth ₹2,684.78 crore, while domestic institutional investors (DII) offloaded shares worth ₹331 crore.

At 09:25 am, the SENSEX was trading slightly higher, 0.15% above the 80,700 level, while the NIFTY50 was also up by 0.15%, making a new record high at 24,650.05 level. Furthermore, Nifty Bank gained by 0.23%, trading above the 52,500 mark.

Broader indices - Looking at the broader indices, the Nifty Midcap 100 index was trading higher by 0.2% above the 57,800 level, while the Nifty Smallcap 100 gained by 0.42% and is trading above the 19,100 mark.

Sectoral Performance- Within the sectoral landscape, Nifty Realty (+1.13%), Nifty Energy (+0.47%), and Nifty Media (+0.38%) are among the top gainers, while Nifty IT (-0.24%) and Nifty Pharma (-0.22%) are the sectors trading negatively.

U.S. Markets- Wall Street closed higher on Monday, extending Friday's rally. The potential for a second Donald Trump presidency, following a failed assassination attempt, fueled hopes for a more relaxed regulatory environment.

Additionally, rising expectations that the U.S. Federal Reserve may start cutting its key interest rate as early as September bolstered investor risk appetite.

The US 10-year Treasury yield declined by 41 basis points to 4.21%, while the US 2-year bond yield dropped 38 basis points to 4.44%.

Commodities - Oil prices edged lower on Tuesday amid concerns about a slowing Chinese economy affecting demand. However, the growing expectation that the U.S. Federal Reserve will start cutting its key interest rate as early as September helped limit the decline.

Brent futures fell 9 cents, or 0.1%, to $84.76 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 13 cents, or 0.2%, to $81.78.

Stocks in F&O Ban - Stocks that are banned for trading in the F&O segment on July 16, 2024, are Aditya Birla Fashion and Retail, Chambal Fertilizers & Chemicals, GMR Airports Infrastructure, Gujarat Narmada Valley Fertilizers & Chemicals, Hindustan Copper, India Cements, Indus Towers and RBL Bank.