On Dalal Street, the bulls continued to be in control as the market posted gains for a seventh straight day on Wednesday. The benchmarks closed the day up more than 5% due to factors like reducing inflation, buying by FIIs, and optimistic market signals from around the world.
The Sensex closed close to 60,200, while the Nifty ended at 17,900, bringing the market to a four-month high.
“Consistent participation by FIIs is the backbone of the current rally in the domestic market. This reversal in the FII trend is owed to the resilience showcased by the Indian economy even as inflation continues to plague the western markets,” said Vinod Nair, Head of Research at Geojit Financial Services.
He added that the western markets were poor before to the release of the minutes from the US FOMC meeting, but that falling commodities and oil prices had also helped to boost confidence among overseas investors.
The rise on the 30-share index was spearheaded by the Bajaj twins, Bajaj Finance and Bajaj Finserv, as it recaptured the 60,000-mark after a four-month absence. Among the other major gainers on the benchmarks were HDFC Life, Hero MotoCorp, BHarti Airtel, Tech Mahindra, and HCL Tech.
Nilesh Shah, Group President & MD, Kotak Mahindra Asset Management Company, commented on the Sensex regaining the 60,000-mark and stated it is only a number. Did it assist you as an investor? You said you could average at lesser levels.
“Keep faith in India growth story and use corrections as an opportunity to add to your equity portfolio,” he said.
In contrast, Nifty Midcap and Smallcap closed the day up almost 5% each, in line with the benchmarks. All other indices ended comfortably in the green, with the exception of the Nifty auto sector, which had a 0.40% decline. The Nifty PSU Bank, Financial Services, IT, and Media indices had the most gains.
