Despite the shadow cast by uncertainties such as growing middle east tensions, speculations surrounding US Fed rate cut in June, surging crude oil prices, and the resurgence of the Chinese economy, Indian markets stand tall, charting a steady course through these turbulent waters.
The rally was fueled by continued strength supported by robust microdata, renewed interest from institutional buyers, and impressive quarterly business updates from major companies, setting an optimistic tone ahead of the upcoming Q4FY24 earnings season.
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Besides the uplift in India’s macroeconomic fundamentals, the surge in inflows from retail investors over recent years has significantly contributed to the ascent of Indian stocks to unprecedented heights.
In FY24, a notable 3.7 crore demat accounts were registered, averaging 30 lakh additions monthly, representing the highest surge ever documented in the history of Indian capital markets.
Simultaneously, domestic institutional investors (DIIs) have infused substantial capital into Indian equities. For instance, they have remained net buyers of Indian shares in 21 out of 25 sessions since the start of March, accumulating stocks worth 597.83 billion rupees during this period, as reported by Reuters.
Amid this backdrop, the Nifty 50, comprising the nation’s top 50 blue-chip companies spanning diverse sectors, has hit another record high of 22,768 points in today’s session by gaining 0.45%.
Also Read: Sensex at 75,000: Reliance, Sun Pharma, Tata Motors, M&M, Maruti among top 10 key gainers that led the rally
Today’s milestone marked the index hitting a new record high approximately 20 times in the current year so far, reflecting sustained momentum and investor confidence.
Notably, the index recorded fresh record highs on six occasions in March alone. Today’s rally also pushed the market capitalization of NSE-listed companies to touch ₹398 lakh crore, or $4.77 trillion.
Major auto companies have reported strong volumes in Q4, while real estate firms have posted record-breaking sales during the same period. Additionally, banks have witnessed improvements in deposit ratios, propelling their stock values to new highs.
On the other hand, metal stocks have experienced significant gains amid the rebound in the Chinese economy, driving metal prices to multi-year highs.
On the technical front of the Nifty 50, domestic brokerage firm Motilal Oswal pointed out that the immediate support for the Nifty 50 is placed at 22500, then 22400 zones, while resistance is at 22750, then 22900 zones.
Also Read: Sensex took just 24 sessions to jump from 74k to 75k; a look at its journey from 1,000 till date
“Now it has to continue to hold above 22550 zones to witness an up move towards 22750 and 22900 zones, while on the downside, support exists at 22500 and 22400 zones,” the brokerage added.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 09 Apr 2024, 02:49 PM IST