Investors accumulate Rs 7.90 lakh crore in 5-day wealth surge

Market observers said India had caught the fancy of foreign investors due to a combination of favourable macroeconomic factors. According to a report by IDBI Capital Markets and Securities Ltd., these factors include a robust GDP growth forecast for FY24E, expected to be in the range of 6 per cent to 6.5 per cent, surpassing global expectations. Additionally, inflation has moderated, with the Consumer Price Index (CPI) reaching its lowest level in 25 months at 4.25 per cent per cent in May 2023.

This decline can be attributed to the softening of commodity prices and improved supply chain dynamics. Furthermore, the repo rate, currently at 6.5 per cent, has stabilised after remaining unchanged in the last two meetings of the Reserve Bank of India (RBI). Collectively, these factors have contributed to India’s regained charm among foreign investors.

With the Sensex soaring over 2,500 points in just five sessions, the bulls are firmly in control. Leading the charge on the Sensex chart was Bajaj Finance, leaving its competitors in the dust with an impressive surge of 7.17 per cent. Close behind, Bajaj Finserv also joined the party, rallying by a commendable 5.76 per cent.

The celebrations didn’t end there as Tech Mahindra, Sun Pharma, NTPC, Titan, Wipro, Tata Consultancy Services, Kotak Mahindra Bank, Infosys, State Bank of India, and ITC have all hopped aboard the gains train.

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