On Monday, strong buying by domestic investors helped equity markets extend the winning streak to a seventh straight session. The benchmark Sensex increased by 528 points to reclaim the 67,000 level, while Nifty scaled the record 20,000 level for the first time.
The positive momentum in stocks was also aided by the success of the G20 summit and investments made by Reliance Industries and HDFC Bank, two major index players. The 67,000 level was once again reached by the 30-share BSE Sensex. To reach 67,127.08, the benchmark increased by 528.17 points, or 0.79%. It increased by 573.22 points or 0.86% throughout the day to reach 67,172.13.
The Nifty gained 188.2 points or 0.94% in day trading to reach its all-time high of 20,008.15. The 50-issue barometer increased by 176.40 points, or 0.89%, to close at 19,996.35, just below the 20,000-point threshold. In its second attempt after July 2023, Nifty has finally reached the eagerly awaited 20,000 mark. Nifty reached this milestone thanks to strong flows from local investors and mixed or negative flows from foreign investors. Axis Bank, Power Grid, Maruti, State Bank of India, Tata Motors, ITC, Nestle, and Mahindra & Mahindra were the top gainers among the Sensex companies. The backwards were Bajaj Finance and Larsen & Toubro.
“The domestic markets began the day on a positive note, bolstered by the historic consensus achieved at the G20 summit, which instilled confidence among investors. Higher-than-expected loan growth data and strong profitability along with lower NPA in PSU banks attracted investor interest.
“Additionally, expectations of easing inflation, driven by a decline in vegetable prices, fueled optimistic sentiment, leading to a market rally,” said Vinod Nair, Head of Research at Geojit Financial Services. India on Saturday pulled off a big diplomatic win after the G20 summit adopted a consensus declaration overcoming major differences on the Russia-Ukraine war, as Prime Minister Narendra Modi called for ending “global trust deficit”. Modi also announced that African Union was admitted as G20’s permanent member. In the broader market, the BSE midcap gauge jumped 1.20% and smallcap index climbed 0.70%.
All the indices ended with gains, with services rallying 3.01%, utilities jumping 2.43%, telecommunication (2.32%), power (2.04%), auto (1.59%), bankex (1.06%), commodities (0.97%), financial services (0.94%) and metal (0.93%). A total of 2,107 stocks advanced while 1,665 declined and 170 remained unchanged. As many as 370 firms hit their 52-week high while 17 fell to their one-year low.
In Asian markets, Seoul and Shanghai ended with gains while Tokyo and Hong Kong settled lower. European markets were trading in the green. The US markets ended in positive territory on Friday. Global oil benchmark Brent crude declined 0.23% to USD 90.35 a barrel.
The BSE benchmark had jumped 333.35 points or 0.50% to finish at 66,598.91 on Friday. The broader Nifty advanced 92.90 points or 0.47% to settle at 19,819.95. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 224.22 crore on Friday, according to exchange data.
