Investors' wealth climbs ₹5.5 lakh cr in 2 days as shares extend rally on improved risk sentiment
2 min read 06 Mar 2023, 04:29 PM ISTThe two-day market rally made equity investors richer by ₹5.5 lakh crore as the total market capitalisation of all BSE-listed stocks rose to ₹265.5 lakh crore today
PremiumBenchmark indices Sensex and Nifty extended gains for a second session in a row on Monday, after strong economic data from the US and investment in the Adani group of companies boosted risk appetite.
The Nifty 50 index closed 0.67% higher to 17,711.45, while the S&P BSE Sensex gained 0.69% to 60,224.46.
The two-day market rally made equity investors richer by ₹5.5 lakh crore as the total market capitalisation of all BSE-listed stocks rose to ₹265.5 lakh crore today amid gains in IT, banking and auto stocks following strong global trends.
"Buoyancy on the global front is helping the index to stage recovery however multiple hurdles are capping the upside on every uptick. We thus reiterate our view to continue with a stock-specific trading approach and prefer sectors that are showing resilience," said Ajit Mishra, VP - Technical Research, Religare Broking Ltd.
Among Sensex stocks, Tata Motors rose the most by 2.79 per cent. NTPC, Reliance Industries, Infosys, TCS, HDFC twins, Tata Motors, ITC, Power Grid and Bajaj Finserv were among the major gainers.
Tata Steel fell the most by 1.22 per cent. L&T, Sun Pharmaceuticals, IndusInd Bank and Ultratech Cement were among the losers.
"The major concerns that prevailed in the market during the previous weeks were the fear of aggressive Fed policy action, which led to a rise in treasury yields & US dollar, and the uncertainties surrounding Adani. All of these have now shifted in favour of the bulls, as US officials reduced the likelihood of a sharp rate hike, forcing yields and the dollar index to moderate. Additionally, improved market sentiment due to the foreign bulk deal at Adani, the oversold stage of the domestic market, and FII buying helped sharpen the recovery," said Vinod Nair, Head of Research at Geojit Financial Services.
"Market has recovered well with Nifty gaining 2% over the last two trading session, showing renewed strength. India VIX too has fallen from 15 zones to 12 levels, thus supporting the positive sentiments. We expect this momentum to continue in the near term supported by positive global cues," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Meanwhile, Mark Matthews, the head of research for Asia at Julius Baer Group Ltd, maintained its overweight stance on India, with Sensex at a target of 70,000, suggesting an upside potential of 17 per cent from the current levels of 60,433.
Also, a consumer survey by Axis My India shows that 43 per cent of people say Sensex will go beyond 70,000 in the next three months. "Whereas 25 per cent believe it will remain between 55,000 to 65,000. Additionally, 18% believe it will drop below 50,000," the report added.
