In a remarkable feat indicative of positive investor sentiment and robust economic prospects, the domestic stock market concluded Wednesday’s trading session on a high note. The Bombay Stock Exchange’s (BSE) benchmark index, the Sensex, moved past the unprecedented 75,000 threshold, marking a historic occasion for the Indian stock market. Moreover, the National Stock Exchange’s (NSE) Nifty reached a new zenith, reflecting the bullish mood engulfing the financial sector.
The Sensex, comprising 30 significant shares, jumped by 354.45 points, equivalent to a 0.47 percent increase, wrapping up the day at a stellar 75,038.15. Concurrently, the Nifty saw a rise of 111 points, or 0.49 percent, concluding at a record-breaking high of 22,753.8. Notably, the previous day had witnessed the Sensex momentarily breach the 75,000 mark before retracting to a close of 74,683.7.
The cumulative market capitalization of all BSE-listed firms soared, reaching an all-time peak of Rs 402.19 lakh crore. This surge pushed the market cap beyond the significant Rs 400 lakh crore landmark, first surpassed on April 8th.
Mr. Vinod Nair, the Head of Research at Geojit Financial Services, commented on the market’s buoyancy, noting that the impressive performance of the broader market fueled the uptrend, despite a slight lag compared to Asian and European counterparts.
Factors underlying the markets’ ascent to new heights include persistent domestic investments, which have counterbalanced the intermittent foreign institutional investors’ (FII) contributions. Mr. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, highlighted robust growth forecasts and the electrified atmosphere due to looming polls as critical components in the investors’ bullish outlook. This sentiment was instrumental in the Sensex’s landmark closure above the 75,000 mark and the Nifty’s record intraday performance.
The global stock market mostly veered into the green zone on Wednesday, seemingly unaffected by Fitch’s ratings downgrade of China’s outlook. Additional tailwinds emanated from optimistic developments in the technology sector and the climbing commodity prices, further boosting investor confidence.
The Nifty Bank index concluded 0.53 percent stronger, settling at 48,986.6. The top NSE gainers of the day included Coal India Ltd, Bharat Petroleum Corporation Ltd (BPCL), ITC Ltd, Kotak Mahindra Bank, and Hindalco Industries Ltd.
Portfolio movements underscored the day’s activity with foreign portfolio investors (FPIs) engaging in a net purchase of Rs 2,778.17 crore in domestic shares. Meanwhile, domestic institutional investors (DIIs) bought equities worth Rs 163.36 crore on a net basis, as illustrated by BSE’s provisional data.
This outstanding performance by the Indian stock market indices not only encapsulates the robust confidence among investors but also signals the vast potential of the Indian economy. As the market scales new heights, stakeholders across the board continue to engage with heightened enthusiasm, possibly heralding a sustained period of economic prosperity and financial growth for the country.
