Share Market: The longest bullish phase in the stock market in six years, market cap increased by Rs 8.11 lakh crore in 3 days.

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Share Market Update: This is the longest bullish phase in the history of the Indian stock market in the last six years. Due to this, investors’ capital increased by Rs 8.11 lakh crore amid the ongoing boom in the stock markets for the last three days. Also, the combined market cap of BSE listed companies reached a record level of Rs 3,57,87,999.80 crore. Recent indications of a possible rate cut by the US Federal Reserve in 2024 have significantly boosted investor confidence. Additionally, the Index of Industrial Production (IIP) hitting a 16-month high in October as well as RBI’s positive comments on India’s GDP forecast have also contributed to positive investor sentiment. The market has also benefited from falling crude oil prices and continuous FPI inflows. Nifty 50 hit an all-time high of 21,492 points on Friday and ended the week with a gain of 2.32%. Last week, 37 out of 50 stocks of Nifty 50 closed trading in the green. HCL Technologies led the pack with a rise of 9.3%, reaching ₹1,491 per share and hitting a record high of ₹1,497.

Small cap jumped 2.38 percent

Other profit making companies during the bullish period in the stock market include LTIMintree, Hindalco Industries, NTPC, Hero MotoCorp, NTPC, Tech Mahindra, UltraTech Cement, Adani Enterprises and Infosys. All these stocks closed the week with a gain of 6% to 7.5%. S&P Sensex also reached a new record high of 71,605 points at the end of the week with a gain of 2.37%. Last week, the rise in mid and small-cap stocks also continued. The BSE Mid-Cap index gained 2.57%, while the BSE Small-Cap index gained 2.38%.

rise in nifty tech

Compared to other Nifty indices, the performance of Nifty IT was quite sluggish for the last few days. But, during this rally the index gained 7.15 percent. The Federal Open Market Committee (FOMC) on Wednesday decided to keep its key interest rate at 5.25-5.5%. After this, there was a boom in the market. However, the change was from the committee’s more dovish stance, indicating a potential 75 basis points rate cut in 2024, whereas previous guidance called for a rate cut of only 50 basis points. This improved outlook has led to strong buying interest in Indian IT stocks. Last week, the Nifty IT index rose from 33,392 to 35,782 points.

Confidence of foreign investors increased in India

The confidence of foreign investors in India has increased for the second consecutive month. After three months of continuous selling, FPIs changed course in November. Due to which ₹9,000 crore was invested in Indian equity. This trend has accelerated in December, with FPIs further increasing their buying activity and acquiring Indian equities worth ₹42,733 crore so far. This buying interest came after the Fed signaled the end of a tightening cycle, causing US bond yields to fall, with the 10-year term falling below 4%. Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said India is one of the top investment destinations for FPIs. There is now near consensus in the global investment community that India has the best prospects among emerging economies for sustained growth for many years to come. Following the inclusion of India in the JP Morgan Emerging Markets Bond Index, there is a lot of enthusiasm to invest in Indian government bonds. Some institutions have already started purchasing. Now that US bond yields have improved significantly, Indian bonds will attract more investment.

The trend of decline in crude oil that has been going on for two weeks has stopped.

After two weeks of decline, crude oil prices saw a slight rise last week as a result of dovish comments from the US Federal Reserve. Brent crude futures ended the week at $76.78 per barrel, indicating an increase of 1.24%, while WTI crude futures saw a rise of 0.28%, ending the week at $71.43 per barrel. Despite this short-term improvement, both Brent and WTI are on track for their third consecutive monthly loss, as they are down 5% and 5.96% respectively so far in the current month.

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