On Wednesday, the 30-share Sensex made headlines by surpassing the 80,000-point mark for the first time in four months, marking the seventh consecutive day of gains for major stock indices. Despite facing some fluctuations, including a momentary dip into negative territory, the index managed to bounce back thanks to a robust performance in the IT sector. Ultimately, the Sensex concluded the day at 80,116.49, reflecting a rise of 520.90 points or 0.65%. Meanwhile, the Nifty index soared to 24,328.95, up by 161.70 points or 0.67%.
Market Performance and Sector Insights
Over the last week, several sectors have demonstrated exceptional growth. Notable performers included:
- Realty
- Automobile
- Metals
- Consumer Discretionary
- Industrials
- Financial Services
Each of these sectors recorded gains exceeding 10%, showcasing a broad-based recovery across the market.
Factors Driving Market Optimism
Analysts attribute this upward trend to a mix of factors. Prashanth Tapse, Senior Vice President of Research at Mehta Equities, highlighted that optimism surged following U.S. President Donald Trump’s announcement regarding the continuation of Federal Reserve Chair Jerome Powell. Additionally, the thawing of tensions in U.S.-China trade talks contributed to a more favorable sentiment.
Vinod Nair, Head of Research at Geojit Financial Services, emphasized that better-than-expected earnings from IT companies and positive forward guidance have been pivotal in sustaining market momentum. However, he also noted that some profit-taking was observed in financial stocks after their recent rally, indicating a healthy market correction.
Impressive Gains Across Indices
Since the start of this seven-session surge, the Sensex has climbed over 6,200 points (an impressive 8.5% increase), while the Nifty has added more than 1,900 points (approximately 8.6%). Broader market indices outperformed the benchmarks, with the BSE Midcap and BSE Smallcap indices achieving gains of 10.4% and 10.9%, respectively.
Investor Wealth and FPI Activity
Investor wealth saw a remarkable rise on Wednesday, increasing by ₹3.1 lakh crore. Over the past week, the cumulative wealth surge reached ₹36.7 lakh crore.
Foreign Portfolio Investors (FPIs), key players in this rally, have purchased shares worth $2.3 billion (around ₹19,837 crore) during this period. Conversely, Domestic Institutional Investors (DIIs) sold shares amounting to ₹4,585 crore. On Wednesday alone, FPIs were net buyers with an influx of ₹3,332.93 crore, while DIIs offloaded shares worth ₹1,234.46 crore.
Leading and Lagging Stocks
On the day of the surge, the IT sector led the charge with a gain of 4%, followed closely by TECK, automobile, real estate, and capital goods, which saw increases of up to 3.10%. In contrast, sectors like banking, consumer durables, and financial services faced declines of up to 0.94%.
Among the Nifty 50 stocks, notable gainers included IndusInd Bank, Jio Financial Services, HCL Technologies, Trent, and Mahindra & Mahindra, with each stock climbing by as much as 16.9% throughout the seven-day rally.
Conclusion
The recent performance of the Sensex and Nifty underscores a resilient market sentiment driven by positive corporate earnings and external factors favoring economic stability. As investors remain optimistic, all eyes will be on the upcoming trading sessions to see if this momentum can be sustained.
