The stock market saw a great rise on the 5th day as well!
The indian stock market has been showing a continuous rise for the last 5 days. Looking at this rise, it seems that the "worst phase of the indian stock market is over." Actually, now foreign institutional investors (FIIs) are making a rapid comeback in the indian stock market. This is the reason why the stock market is buzzing. This week, the Nifty 50 saw a gain of 4.26 percent i.e. 953.2 points, reaching the level of 23,350.4. At the same time, the 30-share Sensex rose 4.17 percent i.e. 3,076 points to reach the level of 76,905.
Biggest weekly rise
According to Bloomberg data, this is the biggest weekly rise of these major indices since february 2021. Apart from this, the midcap and smallcap index registered a gain of 7.27 per cent and 8.14 per cent. On the other hand, talking about Friday, Nifty and Sensex were up by 0.69 per cent and 0.73 per cent. According to BSE data, there was a buying trend in the market today, due to which 2,823 stocks saw a rise.
Nifty can go up to 23,500
This week's market rally has come at a time when trade tensions are increasing and more tension is expected after the reciprocal tariffs come into effect from april 2. According to analysts at Motilal Oswal, Nifty may find support at the level of 23,000, and if it maintains this level, it can go up to 23,333 and then 23,500.
Major reasons for the rise in the indian stock market
First is the return of foreign investors. Global funds, which have made record selling this year, made strong purchases in the cash market on tuesday and thursday this week. FIIs bought shares worth Rs 1,462 crore on tuesday and Rs 3,239 crore on Thursday. Decline in valuation is also the reason. In fact, during the fall in the market, the valuation of the shares also decreased. The P/E ratio of Nifty 50 is 19 times, which is down from the peak of 23.8 times in september last year. The P/E ratio of Nifty auto and Nifty FMCG index has also come down to 20 times and 37 times respectively.
Signs of economic recovery also strengthened the market. India's retail inflation rate came down to a seven-month low of 3.61 percent in february, raising expectations of further reduction in repo rate. At the same time, the Index of Industrial Production (IIP) reached an eight-month high of 5.01 percent in January. Apart from this, due to the global rally, greenery has returned in the stock market.
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