Investor Wealth Swells by ₹4 Lakh Crore as Zooms 1,000 Points;

On Friday, indian equity benchmarks BSE Sensex and Nifty 50 surged to new record highs, buoyed by positive cues from Wall Street. The Sensex soared by 1,017.63 points (1.22%) to close at 84,202.43, reaching an intraday high of 84,240.50. The Nifty rose by 250.75 points (0.99%) to 25,666.55, peaking at 25,692.70. The total market capitalization of BSE-listed companies increased by ₹4 lakh crore to ₹469.5 lakh crore.

Global Influences
Overnight data indicated that U.S. jobless claims fell to their lowest level since May, suggesting a robust labor market. This positive sentiment spilled over to the S&P 500 and Dow Jones, which each gained up to 1.7%. Asian markets, including those in Hong Kong, Japan, and Korea, also experienced gains, aligning with the global rally.

V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the ongoing global bull run is supported by strong U.S. labor market data, indicating a soft landing amidst declining interest rates—favorable for global equities.

Foreign Portfolio Investments
Foreign Portfolio Investments (FPIs) are expected to increase, especially if the Federal Reserve's easing cycle leads to a risk-on rally in the U.S. According to Emkay Global, FPIs have invested ₹33,281 crore in indian stocks this September. Year-to-date, net FPI inflows for 2024 stand at ₹42,300 crore, compared to ₹1.7 lakh crore in 2023, signaling potential for accelerated investment going forward.

Sector Performance
The broader market also showed strength, with the smallcap index up by 0.5%. Metals, in particular, rallied, with shares of JSW Steel rising over 3%, while Hindalco and Tata Steel also saw gains of around 2%. A bullish note from global brokerage Macquarie highlighted resilient domestic fundamentals in the metals sector, further driving investor interest.

Technical Outlook
Analysts suggest that Nifty is likely to trade within the 25,000-26,000 range, with key resistance at 25,500. Prashanth Tapse of Mehta Equities recommended stock picks like Titan (current market price ₹3,781) with a target of ₹3,951, along with Oberoi Realty and Naukri for their bullish potential.

The overall sentiment is optimistic as investors remain buoyed by positive global cues and strong domestic performance, making october a promising month for equity markets.
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Balasahana Suresh

20/09/2024 12:18 PM