Mumbai, Dec 05 (The Street Press India) – Stock market numbers kept rising for the sixth day in a row on Tuesday. This happened because foreign investors bought a lot, and the prices of crude oil went down, making things easier for the stock market.
Experts mentioned that the positive mood from good economic news last week got even stronger. The results of the assembly elections in Madhya Pradesh, Rajasthan, and Chhattisgarh increased optimism about the BJP staying in power at the Center in 2024.
Investors anticipate that the RBI will keep the interest rate unchanged in its upcoming monetary policy decision later this week. In early trade, the BSE Sensex rose by 169.94 points, reaching a new high of 69,035.06, while the Nifty also reached a record high of 20,739.40 with a gain of 52.60 points, or 0.25 per cent.
Adani Enterprises and Adani Ports continued their upward trend among Sensex firms, gaining 4.40% and 4.37%, respectively. Notable gainers also included BPCL, Axis Bank, Mahindra & Mahindra, and SBI. However, HCL Tech, Infosys, and Bajaj Auto experienced losses of up to 1.54%.
Out of the 30-share benchmark, 20 stocks were in positive territory, and among Nifty stocks, 29 showed gains. On Monday, foreign institutional investors bought shares worth Rs 2,073.21 crore, according to exchange data.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the significant institutional buying reflects confidence in the Indian market. Foreign investors have shifted from selling to consistent buying over the last 7 days, particularly in frontline banking stocks. This, combined with short covering and reasonable valuations, is expected to maintain strength in this segment.
According to Vijayakumar, there is potential for the market to rise by another 5% in the coming weeks. However, he cautioned that beyond that point, stretched valuations might lead to corrections in the market.
In Asian markets, Hang Seng and Nikkei 225 traded lower by 1.77% and 1.35%, respectively, while Shanghai Composite was not actively trading.
European markets had a mixed finish on Monday, with Germany’s DAX closing 1.17% higher, France’s CAC 40 climbing 0.30%, and London’s FTSE 100 declining 0.06%.
In the US, the markets ended with a mixed note, with S&P 500 registering a loss of 0.54% on Monday. Meanwhile, the global oil benchmark Brent crude slipped 0.01% to USD 78.02 a barrel.
On Monday, the 30-share BSE Sensex recorded a significant surge, jumping 1,383.93 points, or 2.05%, to reach a lifetime high of 68,865.12. The index achieved an intra-day record peak of 68,918.22. This marked the largest single-day jump since May 20, 2022.
Additionally, the combined market capitalization of BSE-listed companies reached an all-time high of Rs 343.48 lakh crore on Monday.
