Nifty 50 rises nearly 1%; why did the Indian stock market gain today?-explained
₹404.1 lakh crore from nearly ₹401.4 lakh crore in the previous session, making investors richer by about ₹2.7 lakh crore in a single session. Nearly 250 stocks, including ICICI Bank, SBI, JSW Steel, Ambuja Cements, Bharat Electronics, Eicher Motors, Hindustan Aeronautics, Hindalco and Trent, hit their fresh 52-week highs in intraday trade on BSE. Experts pointed out that the Indian stock market has been rising of late as investors have shifted focus to domestic factors, such as macro numbers and corporate earnings.
Moreover, expectations of political stability after the Lok Sabha elections have also underpinned market sentiment. “Investors placed more bullish bets on the monthly F&O expiry day, which saw benchmark indices rally for the fifth straight session led by gains in frontline banking and metal stocks. Even the fall in other Asian and European indices and US Dow Futures witnessing a sharp fall didn't deter local investors.
FII fund outflows have been a concern area. Still, India's strong growth prospects and hopes of a majority win for the ruling party in the upcoming elections have been drawing a lot of domestic investors to take exposure to equities," said Prashanth Tapse, Senior VP (Research), Mehta Equities. The growing might of domestic investors is another factor behind the resilience of the Indian stock market despite global headings.
Foreign institutional investors have been selling Indian equities, but the heat of that is being mitigated by domestic investors. "During the last seven days, FIIs (foreign institutional investors) sold equities worth a massive ₹25,853 crore. But the DII (domestic institutional investors) buying overwhelmed this FII selling and the market continued its upward momentum," V K
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