The 30-share BSE Sensex climbed 339.51 points, reaching an unprecedented peak of 79,013.76, driven by strong buying in blue-chip giants Reliance Industries and ICICI Bank. Meanwhile, the Nifty rebounded impressively, adding 97.6 points to achieve a fresh all-time high of 23,966.40.
Top gainers included Ultra Cement, Dr. Reddy's Laboratories, Grasim Industries, JSW Steel, and Tata Steel. Conversely, Tech Mahindra, TCS, HCL Technologies, Shriram Finance, and Nestle India were among the top losers.
Ajay Bagga, banking and market expert, commented on the market's performance, saying: "Foreign Institutional Investors (FII) selling returned in a big way yesterday in the cash markets but DIIs stepped in to absorb that selling. Today we have a weak
Bagga emphasised the upcoming significant events, including the U.S. Presidential Election Debate and the U.S. Personal Consumption Expenditures (PCE) inflation number, which are expected to influence the market.
He added: "Two big events coming up are the US Presidential Election Debate tonight and the US PCE inflation number on Friday. Indian markets are in an overbought zone, and we expect some consolidation at these levels. The next triggers will be US inflation number based rate cut expectation anchoring and the Union Budget expectations, along with the start of the earnings announcement season in two weeks time."
In the U.S., indices closed marginally higher on Wednesday, buoyed by Amazon's generative AI initiative, which pushed its valuation past USD 2 trillion.
However, a disappointing outlook from Micron Technology impacted the semiconductor sector, including major player Nvidia.
Chinese industrial profit growth also showed signs of slowing, with a 0.7 per cent year-on-year increase in May, down from April's 4 per cent.
The Japanese yen's weakness continues, hitting a near 38-year low against the dollar, trading at 160.82. Meanwhile, U.S. home sales declined in May, with the Commerce Department reporting a decrease to 619,000, down 11.3 per cent from April's revised 698,000.
Investors are now keenly awaiting the U.S. PCE price index data, the Federal Reserve's preferred measure of inflation, which is due on Friday.
Varun Aggarwal, founder and managing director, Profit Idea said, "Asian markets were trading negatively on Thursday, with the Nikkei 225 down by 1.07 per cent, the Hang Seng declining by 1.56 per cent, and the Shanghai Composite falling by 0.70 per cent. Despite the bearish trend in equities, crude oil prices saw a slight uptick, with WTI crude rising to USD 80.89 per barrel, up 0.08 per cent, and Brent crude climbing to USD 85.23 per barrel, up 0.26 per cent."
He added, "The U.S. Dollar Index (DXY) also saw a rise, up 0.26 per cent to 106.05, reflecting the dollar's strength amidst global economic uncertainties. U.S. stock indices ended with modest gains; the Nasdaq Composite rose by 0.49 per cent, the S&P 500 increased by 0.16 per cent, and the Dow Jones Industrial Average went up by 0.04 per cent."
Market participants are closely watching the developments in global economic indicators and key events. The Indian market, after achieving an all-time high, appears to be in a consolidation phase, awaiting further cues from both domestic and international arenas.
The anticipated U.S. inflation data and domestic earnings announcements are expected to provide clearer direction in the coming weeks.