December 6, 2023
New Delhi, India
Stock Market Highlights
In a bullish turn, the Indian stock market witnessed a remarkable surge, with the Sensex rising 300 points and the Nifty approaching the crucial 21,000 mark. Investors celebrated gains of Rs 2.17 lakh crore in a single day, driven by robust institutional inflows and positive sentiments in blue-chip stocks.
Wealth Creation and Market Cap Milestone
Investors’ wealth soared as the market capitalization of BSE-listed companies reached Rs 348.64 lakh crore, marking a significant milestone. The combined valuation of all listed companies on both the BSE and NSE surpassed the USD 4 trillion mark for the first time.
Both Sensex and Nifty closed at 69,653.73+357.59 20,937.70 up +82.60
Foreign Investors’ Confidence
Foreign institutional investors played a pivotal role in the market’s upward trajectory, reversing their selling strategy to become consistent buyers over the last seven days. This shift reflects growing institutional confidence in the resilience of the Indian market.
Positive buying prevailed in capital goods, IT, FMCG, metal, oil & gas, and power sectors. However, selling pressure was noted in the auto, bank, pharma, and realty sectors.
Leading the gainers on the Sensex were ITC, Wipro, Tech Mahindra, and Nestle India, contributing to the broader market’s 0.21% uptick in both the BSE midcap gauge and smallcap index.
Global Market Dynamics
Asian markets responded positively to a drop in US Treasury yields, with Japan, South Korea, Hong Kong, and Australia witnessing upward trends. This influence stems from expectations of a potential US Federal Reserve rate cut next year.
US Market Performance
The US stock market, however, witnessed mixed results. The Dow Jones and S&P 500 eased, while the Nasdaq Composite closed higher. This outcome followed fresh employment data, which increased speculation about an earlier-than-expected Fed rate cut.
Outlook and Closing
As Nifty traded around 21,000 levels, indicating a positive start for Indian benchmark equity indices, the market outlook remains optimistic. The interplay of domestic and global factors emphasizes the dynamic nature of financial markets.
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