BENGALURU: India’s benchmark NSE Nifty 50 resumed its rally to all-time highs after two sessions, led by car maker Maruti Suzuki, while a strong macroeconomic growth outlook and steady return of foreign inflows continued to aid sentiment.
The NSE Nifty 50 was up 0.33% at 24,401.20 points as of 12:08 p.m. IST on Tuesday, hitting record-high levels after a two-session pause.
The S&P BSE Sensex added 0.37% to 80,254.06 points, just shy of all-time high levels hit last week.
Indian shares flat as consumer stocks offset drop in Titan, banks
Both the benchmarks have gained 8%-8.5% since the beginning of June, helped by policy continuity after national election results and a growth upgrade by the Reserve Bank of India for fiscal year 2025, bringing back foreign inflows into domestic equities after a two-month lull.
Foreign investors have bought domestic equities worth 376.97 billion rupees ($4.52 billion) since the beginning of June.
“The overall fundamentals of Indian markets, both from growth and earnings outlook perspectives, remain positive, which is limiting any downside despite high valuations,” said Poonam Tandon, chief investment officer at IndiaFirst Life Insurance.
“We also expect earnings season to be reasonably strong, supporting momentum in markets,” Tandon added.
On the day, Maruti Suzuki jumped about 5% after local media reports said that the Indian state of Uttar Pradesh had waived registration fees on hybrid cars. Maruti Suzuki is among the top sellers of hybrid cars in the country.
“This policy could greatly benefit automobile makers like Maruti Suzuki and Mahindra & Mahindra, which are actively investing in hybrid technology,” said Rahul Sharma, managing partner at Equity 99.
Maruti Suzuki’s stock was the top gainer on the Nifty 50 and also led a 1% jump in the auto index.
Information technology stocks shed 0.1%, ahead of comments from Federal Reserve Chair Jerome Powell, due later in the day, which could provide cues on the timing of a rate cut.
The broader, more domestically focussed small- and mid-caps also rose about 0.3% each, hitting all-time high levels.