Investors richer by Rs4 trillion in three days as indices reach all-time high
Premium- From the 30-share pack, 14 stocks closed with gains led by HDFC, Kotak Mahindra Bank, ICICI Bank, SBI, HDFC Bank and Axis Bank with more than 2%
Mumbai: Driven by a robust show by benchmark indices, investors have seen their wealth rise by ₹4.02 trillion as the BSE Sensex rallied for the third consecutive day to close at an all-time high, led by gains in financials and banking stocks.
For the last three days, the benchmark index, Sensex zoomed 1,782.93 points or 3.39% to a closing high of 54,369.77. During the day’s trade, it advanced 642.55 points to 54,465.91, its lifetime high. The broader index, Nifty surged 495.75 points, or 3.14%, to close at 16,258.80.
Led by the sharp rally in the equity market in the last three days, the market capitalization (m-cap) of BSE-listed companies surged ₹4.02 trillion to ₹239.52 trillion.
"Bulls were in complete control as Indices rose a percentage led by large-caps and financials even as midcaps went through a corrective phase today after many months of outperformance. The thumping retail response on the first day itself in the IPO of the foursome seems to have had a cool-off effect on the broader markets today" LKP securities Head of Research S Ranganathan said.
The RBI's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy on Friday.
"The MPC is likely to keep the growth narrative (and forecast) similar to June policy at 9.5%, with risks broadly balanced amid improving agri output, still-strong rural demand (even though not fully insulated), better-adapted firms, stable financial conditions, global growth spillovers and new risks in the form of delta variant or third wave/slower vaccination drive," Emkay Global Financial Services said in a report.
From the 30-share pack, 14 stocks closed with gains led by HDFC, Kotak Mahindra Bank, ICICI Bank, SBI, HDFC Bank and Axis Bank with more than 2%.
In the broader market, BSE mid-cap and small-cap indices fell up to 1.60%.
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“Major equity indices have touched all-time highs today. We have a significant rally in banks, Financials and large cap stocks which made it possible. Although, mid and small cap stocks remained largely muted as leadership was seen from large cap space today. First, the PMI data which came in positive yesterday and comments by FM on GST collection scaling back to 1 trillion mark proved sentimentally positive," Anand Rathi Shares & Stock Brokers Head- Equity Research (Fundamental) Narendra Solanki said.
The market breadth was negative on Wednesday, with 1,086 stocks ending higher and 2,176 ending lower on the BSE. About 467 stocks touched their 52-week highs while 16 touched 52-week lows. Tracking the positive sentiment in the market, 318 stocks hit their upper circuits.
Foreign institutional investors have net bought $6.46 billion in equities and sold $3.30 billion in debt since the beginning of the calendar year, while domestic institutional investors have net bought ₹16,676.34 crore worth of stocks, according to data on the exchanges.
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