Bull Run Resumes As Budget Uncertainty Fades; Nifty Hits Record High, Reliance Up 3%

The Nifty soared to a fresh record high, while the Sensex was on the verge of conquering new heights on February 2, riding on the back of positive sentiments and a resolution to the uncertainty lingering post the Budget. The market started the day on a positive note, and by midday, the Sensex was up 1,164.36 points or 1.63% at 72,809.66, while the Nifty surged 361.70 points or 1.67% to 22,059.20, marking a lifetime high of 21,812.

The bullish wave was not limited to the domestic front. Upbeat cues from global markets played a pivotal role in fueling the surge. The US markets witnessed robust gains as investors shifted their focus from the Federal Reserve's monetary policy decision to stellar corporate earnings. Asian markets followed suit, setting the stage for a positive opening for domestic equities.

Driving the charge were heavyweight stocks, with several index leaders contributing significantly to the Nifty 50's impressive upward trajectory. Reliance Industries surged 3%, inching closer to a market capitalization of Rs 20 lakh crore. Banking giants ICICI Bank and Kotak Mahindra Bank also witnessed a substantial increase of 1-2%. Major technology players like Infosys and TCS registered jumps of around 3% each.

The gains witnessed in this session were not limited to specific sectors, as all sectoral indices traded in the green. Frontline sectoral indices such as information technology, automobiles, banking, energy, metals, and pharma reported gains ranging from 1 to 3.5%.

Two major events, the Budget and the FOMC meeting, had cast a shadow of uncertainty, leading to a 'sell-on-rise' sentiment among market participants. With these events now behind us, investors have shifted their focus back to the ongoing Q3 earnings season.

Market analysts foresee the prevailing upside momentum to be sustained in the coming sessions. They anticipate a reduction in volatility and a shift in focus towards the earnings season and global cues.

As the Nifty scales new heights and the Sensex inches closer to a historic peak, the Indian equity market is riding a wave of optimism. Global cues, strong performances from heavyweight stocks, and broad-based gains across sectors are all contributing to this bullish momentum. With major uncertainties now behind us, market participants are looking forward to a sustained rally, with the ongoing earnings season expected to play a crucial role in shaping the market direction in the coming weeks.