In a remarkable turn of events, equity investors have witnessed an impressive surge in their wealth, totaling ₹22.12 lakh crore, thanks to a five-day stock market rally. The benchmark BSE Sensex experienced a significant uptick, soaring over 4% during this period. On the latest trading day, the Sensex climbed 557.45 points, closing at 76,905.51, and even touched 77,041.94 at its peak.

Strong Market Performance

Over the past week, the Sensex has gained 3,076.6 points, marking an increase of 4.16%. The total market capitalization of companies listed on the BSE surged to ₹4,13,30,624.05 crore, reflecting a robust investor sentiment.

• Key Highlights:
  • Sensex increased by 557.45 points on the last trading day.
  • Five-day rally resulted in a total gain of 3,076.6 points.
  • Market cap jumped to ₹4,13,30,624.05 crore.

Investor Sentiment Shifts

Despite the prevailing negative sentiment in global markets, investors displayed resilience. Prashanth Tapse, Senior VP at Mehta Equities Ltd, noted that foreign institutional investors (FIIs) have returned to local equities, significantly boosting market confidence. The recent price corrections have made stocks appealing across various sectors, particularly in the mid and small-cap indices, leading to a short covering that helped the Sensex surpass the 77,000 mark during intraday trading.

Winners and Losers on the BSE

Among the top gainers in the Sensex pack were:

• NTPC
• Bajaj Finance
• Kotak Mahindra Bank
• Axis Bank
• Nestle
• Larsen & Toubro
• Tata Motors
• ICICI Bank
• Power Grid
• Zomato

Conversely, stocks such as Infosys, Tata Steel, Mahindra & Mahindra, Titan, and Bajaj Finserv struggled, marking them as the laggards of the session.

Foreign Investment Trends

Data reveals that FIIs purchased equities worth ₹3,239.14 crore on Thursday, further contributing to the positive market momentum. The BSE small-cap index rose by 2.05%, while the mid-cap index saw a rally of 1.14%. Among sectoral indices, oil & gas stocks surged 2.25%, alongside utilities, telecommunications, energy, healthcare, and industrials.

• Sector Performance:
  • Oil & Gas: +2.25%
  • Small-Cap: +2.05%
  • Mid-Cap: +1.14%
  • Laggards: Consumer Durables and Metal sectors

Market Outlook

The domestic market closed the week on a high note, reflecting a consistent recovery. Vinod Nair, Head of Research at Geojit Financial Services, emphasized that the anticipated decrease in risk-free rates, coupled with a correction in the dollar index, is encouraging fund flows back into emerging markets. With FIIs transitioning from sellers to net buyers, fueled by dovish signals from the U.S. Federal Reserve hinting at possible rate cuts this year, optimism in the domestic market has been reignited.

In summary, the recent stock rally not only underscores the resilience of Indian equity markets but also highlights the shifting dynamics of investor sentiment, paving the way for future growth.