Stock market news: Benchmark indices, NSE Nifty 50 and S&P BSE Sensex opened higher on Monday, April 1, led by high-weightage financials and information technology stocks, following a moderation in a key US inflation reading that aided sentiment. Soon after opening, the indices surged to their respective all-time highs led by surge in metals, media, and financial services among others.

The blue-chip NSE Nifty 50 index was up 0.91 per cent to touch a record-high of 22,529.95, while the BSE Sensex rose 0.82 per cent to a record high of 74,254.62 during early trade.

The positive opening reflects optimism among investors, buoyed by the recent moderation in US inflation and expectations of a Federal Reserve rate cut in June.

Asian markets also showed a slight uptick, with the MSCI Asia ex-Japan index adding 0.2 per cent, following data indicating a decrease in US inflation in February.

Federal Reserve Chair Jerome Powell's remarks on Friday, confirming that the latest inflation reading aligned with the central bank's expectations, further contributed to the positive sentiment.

Indian shares concluded fiscal year 2024 with notable gains, supported by robust macroeconomic fundamentals and significant fund inflows. The Nifty 50 index rose approximately 29 per cent, while the BSE Sensex added 25 per cent in the financial year ending on March 31.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said “The undertone of the market is bullish and there is momentum in the market. The market has been showing signs of consolidation but the spurt in Nifty by 322 points on the last 2 trading days indicates that the upward momentum can sustain.”

“There are reports of mutual funds introducing restrictions on redemptions from the smallcaps schemes. This is in response to the  ‘ frothy’ valuation in this segment and the concerns expressed by the  regulator. The consequence of this action would be higher flows of funds into the largecaps, which, in turn, can lift the largecaps. So, watch out for largecaps in automobiles, capital goods, financials and select pharma which are likely to post good Q4 numbers,” Vijayakumar added.

"The RBI monetary policy meet scheduled for April 3 to 5 is likely to keep rates unchanged and, therefore, is unlikely to impact the market," according to Vijayakumar.

Foreign portfolio investors, who had been sellers in Indian equities over the previous two financial years, reversed their trend and became buyers. Concurrently, domestic mutual fund investors continued their streak of purchasing domestic equities for 36 consecutive months.

According to provisional data from the National Stock Exchange, overseas investors bought shares worth Rs 188 crore on a net basis on Thursday. Meanwhile, domestic institutional investors purchased shares worth Rs 2,692 crore.

Stocks to watch

• Hindustan Aeronautics: The company secured a contract worth Rs 1,173 crore for the supply of gas turbines.
• HG Infra Engineering: Awarded a project worth Rs 220 crore from Jodhpur Vidyut Vitram Nigam.
• Karnataka Bank: Signed a pact with ICICI Lombard (ICIL.NS) to distribute their general insurance products.
• Rail Vikas Nigam: Its joint venture with Salasar Techno Engineering emerged as the lowest bidder for a project worth $7.2 million from Energy Development Corporation.

(With Reuters inputs.)