Benchmarks for the equity markets, the Sensex and Nifty, continued to rise for the seventh straight day on Wednesday, setting new records as a result of persistent purchasing by foreign institutional investors and a decline in the price of crude oil.
Analysts blamed falling US bond rates for the unrelenting influx of foreign capital. According to them, local investors are still upbeat due to the country’s solid macroeconomic statistics and hopes of continued political stability.
Additionally, they continued, investors anticipate that the Reserve Bank would keep interest rates unchanged in its bi-monthly monetary policy decision, which is scheduled for release on Friday.
ITC increased by 1.70 percent, Wipro by 1.43 percent, Tech Mahindra by 1.36 percent, and Nestle India by 1.27 percent among the top Sensex movers. Reliance, Asian Paints, and HCL Tech were among the other winners.
ICICI Bank, NTPC, UltraTech Cement, and Tata Steel, on the other hand, all had trading losses of up to 0.82 percent.
According to exchange statistics, shares worth Rs 5,223.51 crore were bought by foreign institutional investors on Tuesday.
In the medium term, the market is expected to rise in anticipation of three things: favourable domestic macros like robust GDP growth, falling inflation, stable interest rates, and soft crude; favourable global cues from declining US bond yields; and expectations of political stability following the elections.
Bank Nifty will continue to be resilient.
Shanghai Composite was not trading, but the Hang Seng and Nikkei 225 in Asian markets saw gains of 0.54 and 1.72 percent, respectively.
The markets in Europe were not uniform. The DAX in Germany increased by 1.96 percent, and the CAC 40 in France by 1.04%. The FTSE 100 in London did not change.
Tuesday’s closing of US markets was uneven, with the S&P 500 seeing a slight decline of 0.06 percent.
The benchmark for global oil, Brent crude, increased marginally to USD 77.30 per barrel.
The 30-share BSE Sensex closed at a new record high of 69,296.14 on Tuesday after rising 431.02 points, or 0.63 percent. In addition, the Nifty increased by 168.50 points, or 0.81 percent, to reach 20,855.30, its lifetime high.
Tuesday saw a more than Rs 2.5 lakh crore increase in the market capitalization of BSE-listed companies, reaching Rs 346.47 lakh crore.
A monthly survey released on Tuesday revealed that, in terms of domestic macroeconomic conditions, the growth of India’s services sector reached a one-year low in November due to softer expansions in new work intakes and output, even as price pressures subsided.
At a one-year low of 56.9 in November, the seasonally adjusted S&P Global India Services Business Activity Index dropped from 58.4 in October.