The Sensex ended above 63000 for the first time on Wednesday and the Nifty also settled at a closing high on spirited buying in the last hour of trade amid continuous inflows from foreign portfolio investors (FPIs) and positive trend in the global markets.
Investors wealth peaked Rs 288.50 lakh crore — the winning run in the last seven sessions pushed up the market capitalisation in the BSE by Rs 7.59 lakh crore.
After remaining in a rangebound territory for the most part of the day as investors awaited release of second quarter GDP data and speech by US Fed chair Jerome Powell later, the benchmark index made a dash in the last hour to close at the historic high. After opening at 62743.47, the 30-share Sensex hit an intra-day high of 63303.01 — a gain of 621.17 points and later ended higher by 417.81 points at 63099.65.
According to Vinod Nair, head of research at Geojit Financial Services, the rally in domestic equities since October was triggered by the global market which started to perform well after a long period of consolidation in 2022.
He pointed out to falling crude and commodity prices which boosted momentum. “Shortly, markets will have to digest the Fed and Reserve Bank of India (RBI) policy meetings in December, which will determine the future trend of interest rates & economic growth,” Nair said.
“India was the best performer in 2022, upgrading the country’s valuation to premium levels. It is highly possible that India’s future performance will be a challenge, being the most expensive market compared to other emerging markets, which are trading very cheaply today. Hence, there is a risk that India will underperform.’’
Provisional data showed FPIs making a massive purchase of Rs 9,010 crore on Wednesday. So far in November, they have made net purchases of over Rs 36,200 crore.
NDTV soars
Shares of NDTV continued to rally for the fifth day running on Wednesday, further climbing 5 per cent to hit its highest permissible trading limit for the day. NDTV founders Prannoy Roy and his wife Radhika Roy have resigned as the directors of promoter group vehicle RRPR Holding Private Limited as the Adani Group neared takeover of the television channel.
The stock climbed 5 per cent to Rs 447.70 — its upper circuit limit — on the BSE in morning trade. At the NSE, it jumped 5 per cent to 446.30, its highest permissible trading limit for the day. In five days, the stock has rallied 24.74 per cent.
Meanwhile, investment in the Indian capital markets through participatory notes rose to Rs 97,784 crore at the end of October, the highest in a year. This was also the third consecutive monthly increase in investments through such a route.
