The Sensex and Nifty achieved unprecedented highs, driven by robust stock performance and increased investment from foreign funds. The market rally, initiated on Friday with optimistic expectations surrounding the BJP-led coalition, sustained momentum on Monday and further expanded on Tuesday. Factors such as declining US gilt yields, steady crude oil prices, and robust GDP growth data contributed to a positive investor sentiment.
Despite a sense of caution prevailing among global counterparts, foreign funds exhibited a strong appetite, netting stock purchases amounting to Rs 5,224 crore. The across-the-board surge in stock values propelled both the Sensex and Nifty to new record levels for the third consecutive session, with foreign funds leading the buying spree.
During the Tuesday session, the Sensex reached an all-time high at 69,381 points early on and closed at 69,296 points, marking a gain of 431 points. Simultaneously, the Nifty concluded at 20,855 points, recording a rise of 168 points. The day’s rally contributed Rs 3.1 lakh crore to investors’ wealth, pushing the BSE’s market capitalization to a new milestone of Rs 353.2 lakh crore.
The ongoing market upswing, initiated by positive expectations from the BJP-led coalition’s performance, continued to gain momentum as election results met predictions. Additional contributing factors include the decline in US gilt yields, signaling potential global interest rate decreases, the stable crude oil price below $80 per barrel, and robust GDP growth data for the July-September quarter.
Vinod Nair of Geojit Financial Services highlighted the market’s resilience to global caution, attributing the continued gains to positive factors such as better-than-expected earnings and GDP growth data. He noted the return of Foreign Institutional Investor (FII) flows to the Indian market, anticipating the Reserve Bank of India’s monetary policy meeting to maintain the status quo. However, Nair emphasized that attention would be closely paid to the commentary on economic growth, foodgrain prices, and the inflation trajectory during the meeting. In Tuesday’s trading session, foreign funds displayed strong buying activity, reinforcing the market’s upward trajectory.
