Markets Gearing Up To Reach New Highs

Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, Market Moves, Market Watchjoin us on whatsappfollow us on googleprefered on google

Markets Gearing Up To Reach New Highs

India reclaimed its position as the fifth-largest stock market in the world as the domestic market strengthened as a result of the deal to raise the US debt ceiling and market valuation grew to USD 3.3 trillion.

India has restored its ranking as the fifth largest stock market in the world, while the BSE Sensex has touched the crucial 63,000 threshold with Morgan Stanley predicting it would reach 68,500 points by December.
 

India reclaimed its position as the fifth-largest stock market in the world as the domestic market strengthened as a result of the deal to raise the US debt ceiling and market valuation grew to USD 3.3 trillion. The benchmark BSE Sensex reached the critical 63,000 threshold while Morgan Stanley predicted that the index will hit 68,500 points by December, marking a 10 per cent rally from its current level. On the other hand, the Monetary Policy Committee (MPC) of the Reserve Bank of India decided to maintain the repo rate at 6.5 per cent at its monetary policy meeting. 
 

According to the Ministry of Statistics and Programme Implementation, India’s Gross Domestic Product (GDP) growth rate improved to 6.1 per cent in January to March for the first time in three quarters. Furthermore, the Confederation of Indian Industry (CII) predicts that the Indian economy would grow at a rate of 6.5-6.7 per cent in FY24, owing to the government’s healthy capex momentum as well as robust domestic forces. The Indian headline indices witnessed a decline after soaring higher in the past two months on the back of a strong earnings season, and ended the fortnight slightly lower.
 

The BSE Sensex declined 0.35 per cent while the Nifty 50 fell 0.19 per cent over the last two weeks. The broader markets, in contrast, roared throughout the fortnight, consistently keeping an advance-decline ratio strongly in favour of advances and reflecting investor optimism. While the BSE Small-Cap index significantly outperformed, surging 3.76 per cent, the BSE Mid-Cap index gained 2.25 per cent. The topperforming sector, BSE Realty, continued its strong uptrend, climbing 4.6 per cent over the past two weeks and generating returns of around 9 per cent over the last month.
 

Macrotech Developers Ltd. and Prestige Estates Projects Ltd. led the sectoral gains, each soaring more than 13 per cent. With gains of 2.89 per cent, BSE Power was also among the top-gaining sectors. Shares of NTPC Ltd. and Power Grid Corporation of India Ltd. soared after Jefferies said in a report that both companies, which have access to the lowest-cost funding, are best placed in the utility sector. With losses of 1.83 and 1.79 per cent, respectively, BSE Oil and Gas and BSE Information Technology had the worst performances. 
 

Heavy selling pressure caused the shares of Tech Mahindra and Infosys to decline by about 4 per cent over the period of the past fortnight. With the support of sound macroeconomic fundamentals as well as reasonable valuations, foreign portfolio investors (FPIs) invested Rs 43,838 crore in the Indian domestic markets in May, which was the largest amount invested in a period of nine months. Also, both FIIs and DIIs have been net buyers over the last fortnight. In the last 15 days, FII inflows totalled Rs 7,490.46 crore, while DII inflows recorded Rs 896.66 crore.