On Monday, April 1, intraday trading saw the benchmarks of the Indian stock market, the Sensex and the Nifty 50, reach new all-time highs as a result of widespread purchasing despite conflicting global indications.
The Stock Market Surge
The Nifty 50 climbed around 2023 points to reach its new record high of 22,529.95 during the session, having begun at 22,455, up 128 points from the previous closing of 22,326.90. At 22,462, the index ultimately completed the day up 135 points, or 0.61 percent.
Sensex surged as far as 603 points to reach its new all-time high of 74,254.62, opening 317 points higher at 73,968.62 versus its prior closing of 73,651.35. At 74,014.55, the Sensex finished the day up 363 points, or 0.49 percent.
The small- and mid-cap indices saw strong advances. While the Smallcap index increased by 2.98 percent, the BSE Midcap index increased by 1.64 percent.
Gain For BSE
Investors gained over ₹6.2 lakh crore in value in a single session as the total market capitalization (mcap) of BSE-listed companies increased to around ₹393.2 lakh crore from approximately ₹387 lakh crore in the previous session.
Analysts note that the robust outlook for the Indian economy is contributing to the market’s favorable undercurrent. Furthermore, market mood is also supported by predictions that rate reductions will begin in the upcoming months. Following the recent downturn, investors are purchasing Indian stocks because they have a good medium- to long-term outlook for the Indian stock market.
Investment Strategist Vijaykumar Comments
Geojit Financial Services’ Chief Investment Strategist, V K Vijayakumar, emphasized that the market is moving forward and has a bullish undertone. “The market has been showing signs of consolidation but the spurt in Nifty by 322 points on the last two trading days indicates that the upward momentum can be sustained,” Vijayakumar stated.
According to Vijayakumar, certain mutual funds have reportedly begun limiting redemptions from small-cap schemes because of concerns over inflated valuations in this market, which could lead to increased money flows into large caps. The big caps would rise as a result.
An Upward Trajectory For The Stock Market
The trading business anticipates that the index will continue its upward trajectory and progressively move closer to 22,700 during the next few weeks.
“Empirically, in general election years, the index has a tendency to bottom out in the first quarter of the calendar year, followed by a rally (minimum 14 percent rally from lows) towards the general election outcome in each of seven instances over the past three decades,” stated ICICI Direct.
“Given that the index completed a corrective phase in the first quarter and created a higher base, we anticipate that it will continue to follow the same rhythm in the current scenario. Consequently, the election result laid the foundation for the second phase of a bull surge towards 23,400. 21,900 would serve as immediate support during the process, which we anticipate holding,” the brokerage business stated.
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