Tuesday, July 23, 2024

Nifty 50, Sensex Hit the Stratosphere; Decoding Today’s Indian Stock Market Rally

The Indian stock market showcases a monumental achievement today by both the Sensex and the Nifty 50, soaring to dizzying heights during today's trading buzz. 


The Indian stock market showcased a monumental achievement today by Sensex and the Nifty 50, soaring to dizzying heights during today’s trading buzz. 

In the wild ride of today’s trading session, both the Sensex and the Nifty 50 smashed through their previous records. Nifty 50 kicked off the day at 22,455, rocketing up by a whopping 128 points from 22,326.90. As the trading day unfolded, it surged to 22,529.95 before settling at 22,462, a gain of 135 points.

Likewise, the Sensex took a leap of 317 points, bursting forth at 73,968.62 compared to its prior close of 73,651.35. Riding the upward wave, it soared to 603 points to scale its all-time pinnacle of 74,254.62. Wrapping up the day wel, it notched up a gain of 363 points or closing at 74,014.55.

The midcap and smallcap indices did well too! The BSE Midcap index notched up a 1.64 percent gain and the Smallcap index skyrocketed by 2.98 percent.

Moreover, the overall market capitalization of BSE-listed companies shot up to ₹393.2 lakh crore from ₹387 lakh crore. It signals an increase of nearly ₹6.2 lakh crore in a single trading session.

Nifty 50 : Reason behind the spectacular surge in the Indian stock market

Elated by the recent market correction, investors are flocking back to Indian equities, lured by prospects for the medium to long term.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, underscored the bullish mood of the market and hailed the significant upward thrust. He highlighted the Nifty’s recent surge of 322 points over the last two trading days, signaling a sustained upward momentum.

Furthermore, Vijayakumar noted that some mutual funds have reportedly begun curbing redemptions from small-cap schemes due to concerns about frothy valuations, potentially diverting more funds into large-cap stocks and giving them an extra push.

According to ICICI Direct, the Nifty 50 is poised to maintain a sunny disposition, with immediate support for the index hovering around 22,000. The brokerage firm envisions the index charting a steady upward course, inching towards 22,700 in the weeks ahead.

In line with historical patterns, ICICI Direct forecasts a bullish rally for the index towards 23,400 by the time of elections. Despite ongoing hurdles, experts maintain an upbeat outlook for the Sensex and the Nifty 50, anticipating robust growth in the new fiscal year.

Naveen Kulkarni, Chief Investment Officer at Axis Securities PMS, anticipates healthy double-digit returns for the Nifty 50, driven by consistent earnings growth and a favorable interest rate environment.

Likewise, Niraj Kumar, Chief Investment Officer at Future Generali India Life Insurance Company, anticipates FY25 to be marked by sustained corporate earnings growth, policy continuity, and a favorable geopolitical landscape. Any deviation from these expectations could potentially sway market sentiment.

Jyoti Sehrawat
Jyoti Sehrawat
Jyoti Sehrawat is a passionate writer and an English language educator who has been writing professionally for over 14 years. Her journey as a writer began as a personal endeavor, a way to express her thoughts, feelings, and imagination. Over the years, it evolved into a lifelong pursuit, a calling that she’s truly passionate about. When she’s not writing, she loves to paint, explore new DIYs and bake French-vanilla muffins!


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