Stock market update nifty at record high sensex up 500 points key factors behind the rally
Domestic markets were headed for a strong closing on Friday, with both benchmark indices up nearly 1 per cent. This marked the second time this week when the two benchmark indices, S&P BSE Sensex and NSE Nifty 50, witnessed a strong rally.
While the Sensex traded 536.68 points higher at 67,525.12 at around 2:08 pm, the NSE Nifty 50 achieved a new record high of 20,291.55.
The strong market rally witnessed today was a result of a series of factors, including positive global cues, favourable economic growth data, and even the exit poll predictions for assembly elections in five states.
The biggest factor that fuelled today’s bull run on Dalal Street was faster-than-expected GDP growth during the second quarter of the ongoing financial year. India’s GDP growth accelerated to 7.6 per cent year-on-year in Q2FY24, beating estimates by both economists and the Reserve Bank of India (RBI).
Other than that, positive global cues also boosted the sentiments of investors, leading to higher foreign inflows in the domestic markets. Moreover, the US Federal Reserve’s dovish commentary on interest rates has also given a significant push to markets around the globe.
Last but not least, the favourable exit poll estimates for assembly elections in five states also contributed to today’s strong rally.
A group of three analysts, with Madhavi Arora, the lead economist at Emkay Global Financial Services at the helm, informed Reuters that a clear victory for the Bharatiya Janata Party (BJP) would “strengthen the belief that the party is in a leading position for the upcoming 2024 general elections and is likely to contribute to another surge in the markets.”
On what investors should do amid the ongoing rally, Tradingo founder Parth Nyati, said, “The Indian equity market is in a strong bullish mood and is hitting a fresh all-time high. We may continue our momentum and outperform our other global peers, backed by the strong fundamentals and under-ownership of FIIs.”
“FIIs may become net buyers amid rising US bond yields and the strong macroeconomics of India. State election results may create some kind of volatility, but we are preparing ourselves for a pre-election rally. In terms of level, 21,000 looks like an easy task in the near term for the Nifty,” he added.
