June 7, 2024
New Delhi, India
Sensex Reaches Record High, Nifty Nears 23,300
The Indian stock market saw a significant rally on Friday, with the Sensex surging 1,619 points to close at a record high of 76,693.36. The Nifty 50 also experienced substantial gains, ending the session near 23,300 at 23,290.15, up 468.75 points or 2.05%.
Market Rally Driven by RBI GDP Forecast
The rally was fueled by the Reserve Bank of India’s (RBI) announcement raising the FY25 GDP growth forecast to 7.2% from the previous 7%, while maintaining the repo rate unchanged for the eighth consecutive term. This positive economic outlook boosted investor sentiment, driving up equity indices.
Sectoral Performance and Market Highlights
- Sectoral Gains: All sectoral indices closed in the green, with notable performances in the auto, IT, power, telecom, and metal sectors, which rose 2-3%.
- Bank Nifty: The Bank Nifty index gained 1.04%, ending 511.30 points higher at 49,803.20.
- Large-cap and Mid-cap Stocks: The broader market also saw gains, with the BSE midcap index up 1.2% and the smallcap index rising 2%.
Key Gainers and Losers
- Top Gainers: Mahindra & Mahindra (M&M), Wipro, Tech Mahindra, Infosys, and UltraTech Cement led the market rally.
- Top Losers: SBI Life Insurance and Tata Consumer Products saw declines despite the overall positive market trend.
Investor Activity
Foreign Institutional Investors (FIIs) net sold equities worth ₹6,867 crore, while Domestic Institutional Investors (DIIs) net bought shares worth ₹3,718 crore on June 6. Overall, FIIs bought ₹13,970 crore and sold ₹20,837 crore, and DIIs purchased ₹17,030 crore and sold ₹13,312 crore worth of equities during the session.
Global Market Context
European shares opened just off record highs, awaiting US jobs data to gauge the Federal Reserve’s next moves. The Stoxx 600 index slightly declined by 0.1%, while global stocks are on track to break a two-week losing streak. Rate-cut expectations are high, following weaker-than-expected US data and recent rate cuts by the Bank of Canada and the European Central Bank.
Conclusion
Friday’s trading session marked a historic high for the Sensex, driven by optimistic economic forecasts and steady interest rates. With all sectors showing positive movement and strong performances from key stocks, the Indian stock market continues to reflect robust investor confidence.
Disclaimer:
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