Indian stock markets soar, adding Rs 12 lakh crore (details)
IANS
In an unprecedented event, the Indian stock markets experienced a significant surge on June 3, witnessing a gain of over Rs 12 lakh crore, or 3.25 per cent. This remarkable occurrence was attributed to a rare alignment of favourable fundamentals, technicals, and sentiments, according to market experts. The market’s bullish trend was primarily driven by the Exit Polls, which predicted the NDA government’s triumphant return to power with a resounding majority. This political forecast instilled a sense of confidence among investors, propelling the Sensex and Nifty to new heights.
The trading session on this day was marked by substantial buying across the Adani counter. Adani Ports and Adani Power emerged as the biggest gainers, reflecting the investors’ positive sentiment towards these companies. Vikram Kasat, Head-Advisory at Prabhudas Lilladher, highlighted the key events that market watchers should keep an eye on in the upcoming week. These include the RBI policy, the 100-day measures list, and the final budget. These events are expected to have a significant impact on the market’s direction and investor sentiment.
IANS
Bank Nifty Index Hits All-Time High
The Bank Nifty index also made headlines, hitting a new all-time high of 51,133 and closing at 50,979. The gains in the Bank Nifty index were spearheaded by the Bank of Baroda, which closed up 12.10 per cent, followed by the State Bank of India (SBI) at 9.07 per cent. In a noteworthy achievement, the SBI became the seventh Indian-listed company to surpass Rs 8 lakh crore in market capitalisation. This milestone underscores the bank’s robust performance and its pivotal role in the Indian banking sector.
The sectoral indices ended in the green, with the Nifty PSU Bank closing at 8.40 per cent, and the Nifty Energy at 6.77 per cent. This positive closure of the sectoral indices indicates a broad-based market rally, with multiple sectors contributing to the overall market gains. The Volatility Index (VIX), a measure of market volatility, plunged to 15 per cent. This significant drop in the VIX suggests a decrease in market volatility and an increase in investor confidence.
GDP Numbers Boost Market Sentiment
Adding to the positive market sentiment were the GDP numbers released on Friday. The Indian economy registered better-than-expected growth of 8.2 per cent, which is expected to provide fundamental support to the market. This remarkable market rally is reminiscent of similar historical events. For instance, in 2014, the Indian stock markets experienced a significant surge following the announcement of the general election results, which saw the NDA government come to power with a decisive majority. The market’s positive reaction to the election results was driven by investor optimism about the new government’s reform-oriented agenda.
In conclusion, the Indian stock markets’ extraordinary gain of over Rs 12 lakh crore in a single day is a testament to the market’s resilience and the positive investor sentiment. The market’s performance was influenced by a combination of favourable fundamentals, technicals, and sentiments, along with positive political and economic indicators. As investors look forward to key events such as the RBI policy, the 100-day measures list, and the final budget, the market’s direction in the coming weeks will be keenly watched.