In a remarkable shift in market dynamics, major stock indices marked their fourth consecutive day of gains on Thursday, showcasing a significant rise in investor confidence. This week alone, the indices surged by 4.5%, the most substantial increase in four years, as traders responded positively to economic signals.

Sensex and Nifty Soar to New Heights

The Sensex experienced a remarkable uptick, climbing 1,508.91 points or 1.96% to settle at 78,553.20, achieving its highest closing since January 3. The Nifty also enjoyed a substantial increase, rising 414.45 points or 1.77%, surpassing the 23,800 mark to end at 23,851.65. Notably, banking stocks led the charge, with the BSE Bankex reaching a historic closing high of 62,293.27, up by 1,557.21 points or 2.56%.

• Weekly Performance: Both indices not only achieved their best weekly performance since February 2021 but also recorded impressive spikes of 4.52% for Sensex and 4.48% for Nifty, effectively breaking a two-week losing streak.

Over the past four trading sessions, the Sensex and Nifty have impressively risen by 6.37% and 6.48%, respectively. Investors saw their wealth soar by ₹4.6 lakh crore on Thursday alone, totaling ₹17.92 lakh crore in the week. The overall market capitalization on the BSE also jumped by ₹25.77 lakh crore during this time.

Positive Economic Indicators Fuel Market Optimism

According to Vinod Nair, Head of Research at Geojit Financial Services, the favorable domestic macroeconomic landscape is prompting investors to take more risks in their portfolios. He noted, “The encouraging inflation outlook, bolstered by expectations of a robust monsoon and decreasing oil prices, is significantly enhancing market sentiment.”

• Broader Index Performance: While the broader market indices lagged behind the benchmarks, they still displayed gains, with the BSE Midcap and BSE Smallcap indices up 0.56% and 0.52% respectively. For the week, they rose 4.24% and 4.69%, showcasing notable increases of 6.15% and 7.88% in recent sessions.

Foreign Investments on the Rise

Foreign portfolio investors (FPIs) continued their buying spree, acquiring shares worth ₹4,667.94 crore on Thursday, contributing to a total of ₹15,492 crore over three days. In contrast, domestic institutional investors (DIIs) were net sellers, offloading shares worth ₹2,006.15 crore on Thursday and ₹6,470 crore over the same timeframe.

• Market Breadth: The market breadth remained favorable, with 2,427 gainers against 1,522 losers on the BSE. All sectoral indices on both the BSE and NSE closed positively, with banking, telecom, financial services, and technology sectors leading the charge with gains up to 2.56%.

Notable Stocks and Sector Performance

Some of the top gainers on the Sensex included Zomato, ICICI Bank, Bharti Airtel, Sun Pharma, and SBI, each showing gains of up to 4.37%. Impressively, every one of the 30 Sensex stocks concluded the day in the green, while Wipro was the sole exception on the Nifty 50.

• Weekly Gainers: Key stocks such as IndusInd Bank, Axis Bank, Adani Ports, Bharti Airtel, and ICICI Bank saw substantial weekly gains, with increases reaching up to 15.34%.

Banking Sector Confidence Boosted

The banking sector thrived on positive forecasts for the monsoon and easing retail inflation, which reignited hopes for enhanced economic conditions.

• Record Bank Nifty Performance: The Bank Nifty finished just shy of its all-time high, closing at 54,290.20, an increase of 1,172.45 points or 2.21%. The Nifty Private Bank index climbed 2.23%, with top performers including ICICI Bank, Kotak Mahindra Bank, SBI, Axis Bank, and HDFC Bank, marking gains of up to 3.73%.

In summary, the stock market’s robust performance this week reflects growing investor optimism, buoyed by favorable economic indicators and resilient banking stocks, suggesting a promising outlook for the near future.