Indian markets extended their recovery by at least 2% for the second day in a row with the Sensex and Nifty 50 on Tuesday propelled by broad-based buying across sectors. Heavyweight stocks supported the rally in the domestic equity markets. Besides, stability in global markets lifted the performance. Due to the upbeat trend, investors became more and more wealthy 5.77 lakh crore on Dalal Street.
The BSE Sensex closed at 52,532.07, up 934.23 points or 1.81%. The benchmark had touched an intraday high of 52,799.40.
heavyweight stock Titan, SBI, TCS, Dr. Reddy’s Lab, HCL Tech, Tata Steel, Wipro, Infosys, ITC, and L&T added 2-6% on the upside. Reliance Industries, the most valuable stock, also jumped 1.6%, making price gains.
Apart from largecap, buying was also seen in midcap and smallcap. BSE mid Cap and Smallcap jumped 508.29 points and 699.49 points, respectively.
All sectoral indices on D-Street edged up and rose 1-6%. However, consumer durables, IT, oil & gas, metal, banking and capital goods stocks outperformed.
This increased the wealth of investors more than 5.77 lakh crore in a single day on BSE.
At closing price, BSE equity market capitalization stood at approx. 240.64 lakh crore on Tuesday as compared to the previous day’s market cap 234.87 lakh crore.
Vinod Nair, Head of Research, Geojit Financial Services. “Absence of fresh selling triggers in the domestic and global economy as well as the fall in commodity prices gave relief to heavily discounted equity markets to show recovery. The recovery indicates the prevailing inflationary uncertainty and tightening of monetary policy. However, with the highly sensitive nature of the current equity market, even the slightest discomfort can trigger volatility”
Nifty 50 closed 288.65 points or 1.88% higher at 15,638.80. The benchmark had touched a high of 15,707.25 before correcting. Bank Nifty climbed 1.55% to end at 33,191.75.
Rupak Dey, Senior Technical Analyst, LKP Securities said, “Nifty moves up after a brief consolidation on the daily chart. At the higher end, it has touched its previous swing low. Daily RSI is in positive divergence. In the short term, Index may move towards 16000. Recovery may continue as long as it stays above 15500”
Meanwhile, the rupee declined by 12 paise to 78.10 per dollar in the interbank foreign exchange market.
So far in June, FPI outflows have increased 40,040 crores has already crossed last month’s selloff in the stock market 39,993 crores. So far this year, FPIs have pulled out more money than 2.07 lakh crore from equity.
On Monday, the finance ministry released its latest monthly economic report for May 2022, under which, it said, agencies around the world have already forecast a slowing of global economic growth, due to rising commodity prices, supply chain Expect to see headwinds with constraints of Rs. Faster than expected return of monetary accommodation. India’s economy is also expected to grow slower, though still higher than other emerging market economies.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said earlier today, “The Finance Ministry’s latest monthly economic review warns about the stress in the government’s finances due to rising food and fertilizer subsidies and revenue from cuts in petrol and diesel taxes. Both the fiscal and current account deficits are likely to worsen further than the budget estimates. This macro headwind could also become a headwind for the markets, especially if crude remains at higher levels. Investors should expect a fundamentally strong large-scale during this phase. Cap should seek protection from market turmoil.”
Investors’ wealth rises by over ₹5.77 lakh crore in a day as markets rally
Indian markets extended their recovery by at least 2% for the second day in a row with the Sensex and Nifty 50 on Tuesday propelled by broad-based buying across sectors. Heavyweight stocks supported the rally in the domestic equity markets. Besides, stability in global markets lifted the performance. Due to the upbeat trend, investors became more and more wealthy 5.77 lakh crore on Dalal Street.
The BSE Sensex closed at 52,532.07, up 934.23 points or 1.81%. The benchmark had touched an intraday high of 52,799.40.
heavyweight stock Titan, SBI, TCS, Dr. Reddy’s Lab, HCL Tech, Tata Steel, Wipro, Infosys, ITC, and L&T added 2-6% on the upside. Reliance Industries, the most valuable stock, also jumped 1.6%, making price gains.
Apart from largecap, buying was also seen in midcap and smallcap. BSE mid Cap and Smallcap jumped 508.29 points and 699.49 points, respectively.
All sectoral indices on D-Street edged up and rose 1-6%. However, consumer durables, IT, oil & gas, metal, banking and capital goods stocks outperformed.
This increased the wealth of investors more than 5.77 lakh crore in a single day on BSE.
At closing price, BSE equity market capitalization stood at approx. 240.64 lakh crore on Tuesday as compared to the previous day’s market cap 234.87 lakh crore.
Vinod Nair, Head of Research, Geojit Financial Services. “Absence of fresh selling triggers in the domestic and global economy as well as the fall in commodity prices gave relief to heavily discounted equity markets to show recovery. The recovery indicates the prevailing inflationary uncertainty and tightening of monetary policy. However, with the highly sensitive nature of the current equity market, even the slightest discomfort can trigger volatility”
Nifty 50 closed 288.65 points or 1.88% higher at 15,638.80. The benchmark had touched a high of 15,707.25 before correcting. Bank Nifty climbed 1.55% to end at 33,191.75.
Rupak Dey, Senior Technical Analyst, LKP Securities said, “Nifty moves up after a brief consolidation on the daily chart. At the higher end, it has touched its previous swing low. Daily RSI is in positive divergence. In the short term, Index may move towards 16000. Recovery may continue as long as it stays above 15500”
Meanwhile, the rupee declined by 12 paise to 78.10 per dollar in the interbank foreign exchange market.
So far in June, FPI outflows have increased 40,040 crores has already crossed last month’s selloff in the stock market 39,993 crores. So far this year, FPIs have pulled out more money than 2.07 lakh crore from equity.
On Monday, the finance ministry released its latest monthly economic report for May 2022, under which, it said, agencies around the world have already forecast a slowing of global economic growth, due to rising commodity prices, supply chain Expect to see headwinds with constraints of Rs. Faster than expected return of monetary accommodation. India’s economy is also expected to grow slower, though still higher than other emerging market economies.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said earlier today, “The Finance Ministry’s latest monthly economic review warns about the stress in the government’s finances due to rising food and fertilizer subsidies and revenue from cuts in petrol and diesel taxes. Both the fiscal and current account deficits are likely to worsen further than the budget estimates. This macro headwind could also become a headwind for the markets, especially if crude remains at higher levels. Investors should expect a fundamentally strong large-scale during this phase. Cap should seek protection from market turmoil.”
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