Febuary 2, 2023
New Delhi, India
Positive Global Cues Propel Indian Indices
The Indian stock market witnessed a significant surge, with both the Sensex and Nifty 50 hitting record highs on the back of positive global cues and investor optimism following the Union Budget 2024.
Global Momentum Boosts Indian Indices
Buoyed by better-than-expected earnings from tech giants Meta and Amazon, global markets experienced a late bounce. Asian shares responded positively, and the US tech sector, including Dow Jones, S&P 500, and Nasdaq Composite, registered notable gains. The spillover effect was evident in the Indian market, where the Nifty 50 jumped 2%, reaching an all-time high of 22,126.80 during intraday trade.
Sectoral Gains Drive Market Momentum
The Indian market’s robust performance was further fueled by substantial gains in key sectors. Heavyweights like Reliance Industries, Infosys, ICICI Bank, and TCS contributed to a 2% jump in the Sensex, reaching an intraday high of 73,089.40. The Nifty Oil & Gas index surged nearly 4%, the Nifty IT index rose 3%, and the Nifty Bank index saw a 1.5% increase.
Budget 2024: A Balancing Act for Long-Term Growth
Despite an initial market decline post-Budget announcements, experts lauded the Interim Budget for its fiscally prudent approach and pro-growth stance. Savvy investors seized the opportunity to acquire high-quality stocks at lower prices, expressing confidence in the resilient domestic growth narrative. The Budget’s careful balancing act, combining fiscal prudence with substantial capital expenditure, is seen as positive for the nation’s economy in the long term.
Closing Statistics and Top Performers
The Sensex closed 440 points higher at 72,086, erasing some intraday gains, while the Nifty 50 reached a closing high of 21,854, up 156 points. Top gainers included BPCL, ONGC, Adani Ports, Power Grid, NTPC, Coal India, Tata Consumer Products, Hero MotoCorp, Tata Steel, and JSW Steel. Laggards included Eicher Motors, HDFC Life, Axis Bank, HUL, HDFC Bank, and L&T.
Long-Term Outlook and Market Stability
Experts express optimism regarding the long-term outlook, emphasizing that the government’s careful approach in the Budget could sustain India’s growth trajectory. The easing of India VIX by 2% reflects a certain level of market stability, further supporting the positive sentiment.
In conclusion, the Indian stock market‘s recent highs are a result of a combination of positive global cues, strong sectoral performances, and a Budget that balances short-term challenges with a focus on long-term economic growth. Investors are optimistic about the resilience of the Indian economy and the market’s potential for sustained growth.
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