December 4, 2023
New Delhi, India
Stock Market Highlights
In a remarkable surge, the Indian stock market achieved new milestones on December 4, 2023, propelled by positive state election results and robust economic indicators.
Market Soars to New Heights
The Sensex witnessed a substantial gain of 1,383 points, pushing Nifty near 20,700, setting fresh record highs. With the exception of Nifty Pharma and Media, all sectoral indices closed in the green, indicating broad-based market strength.
Both Nifty and Sensex closed at 20,686.80+418.90
The Nifty Bank index in India reached a new record high after 91 trading sessions, surpassing its previous peak of 46,369 on July 21. All 12 constituents of the Nifty Bank are trading positively, with HDFC Bank and ICICI Bank contributing to over 60% of the total upside. This achievement follows the index’s bounce from the October series’ F&O expiry day low of 42,105, marking a remarkable rise of over 4,000 points. Notably, today’s gain stands as the most significant single-day increase for the Nifty Bank since April 2022.
Winners and Losers on Nifty
Leading the gainers on Nifty were Eicher Motors, Adani Enterprises, Adani Ports, BPCL, and ICICI Bank. Conversely, HDFC Life, Britannia Industries, Wipro, Sun Pharma, and Titan Company faced losses.
The financial services and energy sectors took center stage, rising by 1.8% and 2%, respectively. Adani group stocks, with gains ranging from 3% to 9%, dominated various sectoral indexes, particularly in metals and energy.
Broader Indices Reach New Peaks
BSE Midcap and Smallcap indices rose by 1% each, reaching new record highs. Small- and mid-caps collectively gained about 1%, continuing their upward trajectory.
Political Influence on Market Sentiment
The ruling Bharatiya Janata Party (BJP) securing victories in three of the four state assembly elections over the weekend significantly impacted market sentiment. Analysts predict increased confidence in the continuity of the BJP government at the center, further propelling the markets.
Analysts from PhillipCapital anticipate that the election outcomes will instill confidence and drive the markets higher. They note a pre-election rally that commenced in November and expect it to gain momentum.
Global Factors and Market Trends
The market’s positive momentum was further fueled by strong domestic macroeconomic data, including quarterly growth and monthly factory activity. November 2023 marked the best month for both Nifty and Sensex, attributed to the return of foreign inflows based on an improved global rate outlook.
The Indian stock market‘s remarkable performance on December 4 reflects a convergence of positive political outcomes, robust economic data, and global factors. The upward trajectory, marked by record highs, indicates a buoyant market poised for potential future gains.
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