India’s stock markets reached remarkable heights on Thursday (1 August, 2024), with the Nifty 50 index breaking the 25,000 mark for the first time during a roller-coaster trading session. This rise was driven by expectations of a potential interest rate cut by the US Federal Reserve in September, which sparked a global rally and boosted investor confidence.

On Thursday, the 30-share BSE Sensex started the day 208 points higher at 81,949.68 and climbed to a new all-time high of 82,129.49. The Nifty 50 also began the day with an 80-point increase, reaching 25,030.95, and later soared to a record high of 25,078.30.

The Nifty 50 index took just 24 trading sessions to add 1,000 points to its value. Meanwhile, the Bank Nifty index rose by over 119 points, opening at 51,672.60.

The Nifty index was launched in 1995 with a value of 1,000 points. It took nearly 12 years to reach 5,000 points, marking a 400% increase. More recently, it took just about 13 months for the Nifty to climb another 5,000 points, reflecting a 25% rise.

To give a clearer picture of its growth:

– In September 2007, the Nifty reached 5,000 points.

– By July 2017, it had doubled to 10,000 points.

– In February 2021, it rose to 15,000 points.

– By September 2023, it hit 20,000 points.

– On August 1, 2024, the Nifty reached 25,000 points.

This rapid rise shows how quickly the index has been growing in recent years.

Major gains were seen in Nifty Metals, Nifty IT, Nifty Private Bank, Nifty Oil & Gas, and Nifty PSU Bank indices. However, the Nifty Realty and Nifty Media indices experienced declines.

Among the Nifty 50 companies, Maruti Suzuki, Hindalco, Coal India, JSW Steel, and PowerGrid Corporation were the biggest winners, showing strong gains. Whereas, Mahindra & Mahindra (M&M), BPCL, Hero MotoCorp, Sun Pharmaceutical Industries, and Eicher Motors were the top losers.

Stock Market Today

Today on August 2, 2024, Indian benchmark indices ended their five-day winning streak, with the Nifty dropping below at 24,750.

By the close of trading, the Sensex had fallen by 885.60 points, or 1.08%, to settle at 80,981.95. The Nifty dropped by 293.20 points, or 1.17%, to end at 24,717.70. Out of 3,509 shares traded, 1,426 advanced, 1,960 declined, and 83 remained unchanged.

Also Read: IRDAI Imposes Rs 2 Crore Fine on HDFC Life

Among the biggest Nifty losers were Eicher Motors, Maruti Suzuki, Tata Motors, Hindalco Industries, and JSW Steel. On the positive side, Divis Labs, HDFC Bank, Dr. Reddy’s Labs, Sun Pharma, and Kotak Mahindra Bank were notable gainers.

Most sectors finished lower, with declines ranging from 1-3% in auto, energy, PSU banks, IT, metal, and real estate indices. The only exceptions were pharma and healthcare sectors, which posted gains.

Want to learn the art and science of managing your money? The 1% Club can help. Details here

Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before making any investment decision.

FAQs

1. Why did Nifty 50 surge to 25,000?

Strong FPI inflows, upbeat corporate earnings, and RBI’s rate cut hopes drove the rally.

2. What caused the sudden drop the next day?

Profit booking by institutions, weak global cues (U.S. inflation spike), and valuation concerns triggered the sell-off.

3. Which sectors led the rally to 25,000?

Banking, IT, and Auto stocks (HDFC Bank, Infosys, M&M) rose 5–8% on growth optimism.

4. How much did Nifty fall after crossing 25K?

Nifty dropped 1.8% (450 points) to 24,550 the next day.

5. Are retail investors trapped at peak levels?

Possibly. Retail buying surged at 25K, but experts advise holding for long-term gains.

6. Will Nifty rebound to 25,000 soon?

Analysts expect volatility but predict 25K again in 1–2 months if global risks ease.

7. Did FPIs sell during the drop?

Yes. FPIs sold ₹3,200 crore in a day due to U.S. rate hike fears.

8. How did the rupee perform during this swing?

INR fell from ₹82.8 to ₹83.5/USD as FPIs exited equities.

9. What should investors do now?

Avoid panic selling. Accumulate quality stocks during dips; focus on banking and infra sectors.

10. Did the budget impact this rally?

Indirectly. Pro-growth budget policies (infra push, FDI reforms) boosted sentiment.