The Sensex opened at a record high of 80,331.48, while the Nifty reached 24,372.15.
At 9:21 am, the 30-share Sensex was up 223.53 points at 80,210.33, while the Nifty was up 66.35 points at 24,352.85.
Most of the broader market indices also started the trading session on a positive note.
The strong momentum on Dalal Street was provided by gains in information technology stocks. Nifty IT rose nearly 1% in early trade and was among the top gainers.
The top five gainers on the Nifty 50 were Hindalco, Tata Motors, ICICI Bank, M&M and HCL Tech. The top losers were HDFC Bank, Cipla, Adani Enterprises, Dr. Reddy’s and IndusInd Bank.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “A bullish market environment has the potential to outperform high valuations in the near term. This rally is being led by private largecap banking stocks which are still reasonably valued after the recent rally. The large FII buying of Rs 5484 crore yesterday was mainly due to delivery based buying in banking stocks led by HDFC Bank.”
“This delivery-based buying may continue for a few more days, providing resilience to the market. FIIs with 3.78 lakh long contracts have taken a ‘U’ turn in their market outlook from large short contracts in early June. The decline in the US 10-year bond yield to 4.35% and the dollar index to 105.29 are positive for fund flows,” he said.
“The market will start reacting to the first quarter results, which will start coming from next week. The financial sector is expected to come out with good numbers. Bajaj Finance’s loan growth is excellent and this is a good sign for the stock,” Vijayakumar said.