Investors’ wealth rises nearly ₹2.26 trillion as Sensex hits fresh record high

Markets cheered on Thursday with solid broad-based gains across indices after FOMC minutes hinted at a slower pace in rate hikes going forward. Benchmark Sensex clocked a fresh all-time high of 62,412.33, while Nifty 50 is moving closer to its record high level. Foreign investors made huge buying after being net sellers for four consecutive days. Rupee also strengthened against the US dollar. Riding on the back of bulls, investors’ wealth also witnessed a significant jump in 1 day to the tune of nearly 2.26 trillion.

Sensex rose by 762.10 points or 1.24% to close at 62,272.68. While Nifty 50 climbed by 216.85 points or 1.19% to end at 18,484.10. Earlier, in the day, Sensex outperformed several world peers by hitting a new historic high of 62,412.33. After touching a fresh 52-week high of 18,529.70 on Thursday, the Nifty 50 is promisingly closing the gap towards its lifetime high of 18,604.

IT stocks were top performers followed by banking, capital goods, and oil & gas stocks. Infosys, HCL Tech, Wipro, Tech Mahindra, and TCS witnessed an upside between 2% to 3%.

Furthermore, after being net sellers between November 18 to November 23, FIIs emerged as net buyers on Thursday with an investment of 1,231.98 crore in the equity market. So far in November, FIIs have infused about 10,989.40 crore in Indian stocks.

Moreover, at the forex market, the rupee closed higher at 81.63 as the dollar index dropped against a basket of world currencies after FOMC minutes indicated a less hawkish stance going forward.

Vinod Nair, Head of Research at Geojit Financial Services said, “Led by broad-based buying, domestic indices witnessed solid gains as investors digested the latest FOMC meeting minutes, which hinted that the rate hike cycle may be slowing down. The optimism was further boosted by falling crude prices and the declining dollar index. Crude oil prices dropped over talks of a possible price cap on Russian oil and a rise in US product stockpiles.”

On the Sensex crossing 62,000 mark, Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, two triggers assisted the Sensex rally to record highs. One, in the mother market US, the market construct turned favorable with rising equities, declining bond yields and falling dollar. Two, macro developments in India show steady rise in credit growth and CAPEX indicating strong economic recovery. Along with this, sharp correction in crude is a big positive. This has facilitated this Sensex rally led by large caps, mainly the HDFC twins, Infosys, TCS, and RIL.

Investors’ wealth also increased substantially on BSE. The market cap of BSE-listed firms rose by 2,25,739.26 lakh crore — taking the total to over 283.70 lakh crore by the end of November 24. On the previous day, the market cap was more than 281.44 lakh crore.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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