Sensex hits 85,000 level for first time before closing flat; FMCG, banking shares drag

Benchmark Sensex and Nifty hit record highs before closing flat, driven by volatile trading and mixed sector performance.

Benchmark Sensex scaled the 85,000 level and Nifty breached the 26,000 mark for the first time before paring gains to close flat in a volatile session on Tuesday (September 24, 2024), dragged by losses in FMCG and select banking shares.

The 30-share BSE benchmark declined by 14.57 points or 0.02% to settle at 84,914.04, snapping its three-day record-breaking run.

In the morning trade, the 30-share BSE Sensex scaled the 85,000 level, jumping 234.62 points or 0.27% to scale a new all-time intra-day peak of 85,163.23. China announcing stimulus measures to bolster its economy fuelled metal shares.

The index, however, hit a low of 84,716.07 in the afternoon session due to profit-taking at record levels. Selling in Hindustan Unilever, Kotak Mahindra Bank and ICICI Bank dragged the key index from the day's highs.

The Nifty eked out gains of 1.35 points or 0.01% to close at a fresh high of 25,940.40. During the day, it climbed 72.5 points or 0.27% to hit a new record intra-day high of 26,011.55. “Investors are struggling to find clear directions following a record rally,” traders said.

Vinod Nair, Head of Research, Geojit Financial Services said, "Domestic benchmarks are attempting to sustain new highs, driven by the U.S. Fed’s aggressive rate cut. Meanwhile, the Chinese central bank’s rate cut, and additional stimulus measures have positively influenced global investor sentiment, resulting in gains for domestic metal stocks."

“Conversely, FMCG and banking stocks exhibited declines due to profit-booking at higher levels,” he said, adding that in the near term, strong inflows from FIIs, driven by the U.S. Fed’s dovish outlook and expectations of a rate cut by the RBI in October, are expected to maintain momentum.