Nifty 50 just 0.62% away from all-time high, up 5.33% in November so far; what's driving the rally? | Mint
Active Stocks
Tue Feb 27 2024 15:57:55
  1. State Bank Of India share price
  2. 749.70 -1.23%
  1. Tata Steel share price
  2. 144.15 1.09%
  1. Power Grid Corporation Of India share price
  2. 292.50 1.65%
  1. Sun Pharmaceutical Industries share price
  2. 1,579.10 1.42%
  1. ITC share price
  2. 411.15 0.48%
Business News/ Markets / Stock Markets/  Nifty 50 just 0.62% away from all-time high, up 5.33% in November so far; what's driving the rally?
BackBack

Nifty 50 just 0.62% away from all-time high, up 5.33% in November so far; what's driving the rally?

Looking at the overall performance in November, the Nifty 50 has surged by 5.33% so far, representing the index's most impressive monthly performance since October 2022. With today's stellar rally, the Nifty 50 is just 0.62% away from reaching an all-time high of 20,222.

In the current year so far, a notable 32 out of Nifty 50 constituents have delivered double-digit returns, with auto stocks taking the lead. Premium
In the current year so far, a notable 32 out of Nifty 50 constituents have delivered double-digit returns, with auto stocks taking the lead.

In a resounding display of bullish momentum, the Indian market witnessed another spectacular rally in today's session. The Nifty 50 surged past the significant 20,000 mark, marking a triumphant return after a two-month hiatus. Concurrently, the market capitalisation of companies listed on the Bombay Stock Exchange (BSE) achieved a historic milestone, surpassing a record of $4 trillion for the first time in today's trade. 

Indian stocks began today's session on a positive note following dovish statements from U.S. Fed Official Christopher Waller. He stated that the central bank is done raising interest rates to tamp down inflation. He said that monetary policy is “currently well positioned" to slow the economy and bring inflation back down.

Also Read: Nifty crosses 20,000 for the first time since September; 5 key factors driving the rally

In response to Waller's comments, the US 10-year Treasury note extended its bearish trend, dropping 7 basis points to 4.26% in today's session, the lowest since September 13. 

Adding to the positive sentiment, S&P Global Ratings released a report titled 'China Slows, India Grows,' predicting that India's GDP growth rate will reach 7% by 2026, outpacing China's projected growth of 4.6%. It expects Asia-Pacific's growth engine to shift from China to South and Southeast Asia.

"We project China's GDP growth to slow to 4.6% in 2024 (2023: 5.4%), edge up to 4.8% in 2025, and return to 4.6% in 2026. We see India reaching 7.0% in 2026; Vietnam, 6.8% (4.9%); Philippines, 6.4% (5.4%); and Indonesia remaining steady at 5%," S&P said.

Also Read: Gold price touches new peak as US dollar index hits 3-month low. Buy or wait?

Buoyed by these positive developments, both Nifty 50 and Sensex concluded Wednesday's trade with gains of 1.04% and 1.10%, respectively. Assessing the overall performance in November, the Nifty 50 has surged by 5.33%, marking its most impressive monthly performance since October 2022. With today's stellar rally, the Nifty 50 is just 0.62% away from reaching an all-time high of 20,222.

Also Read: Bharti Airtel stock breaches 1,000 mark for first time; m-cap nears 6 lakh crore

Satish Menon, Executive Director of Geojit Financial Services, said, "The BSE market cap's ascent to the $4 trillion mark signals the start of fresh momentum in the stock market. The Indian stock market is rallying due to solid Q2 earnings and a drop in crude oil prices. Domestic liquidity has provided support to the market, but the lack of foreign fund inflows due to high US bond yields has been a hindrance."

"Fortunately, interest rates in the US have peaked, and the dollar index is declining, which is expected to attract foreign institutional investors (FIIs) into the Indian equity market. The consistent decline in the Consumer Price Index over the past four months has also sent out a positive signal to the market."

"Despite the strong fundamentals, there may be some volatility in the market leading up to the state election results, which are due on December 3. Having said that, we can definitely say that India's growth story remains intact, and the market will be on an upward trajectory going ahead," he added.

Nifty Realty index hit a 15-year high

Amidst a robust economic recovery in the country, real estate stocks are experiencing an extraordinary surge, propelling the Nifty Realty index to hit a 15-year high in today's trade. Experts are optimistic about the sector's momentum, anticipating sustained growth in the coming years.

Year-to-date, the index has soared by an impressive 62.91%, significantly outshining the Nifty 50 benchmark, which has registered a 11% gain during the same period.

Key constituents of the realty index, including Prestige Estates Projects, Macrotech Developers (Lodha), and DLF, have recorded remarkable gains ranging from 50% to 105%. These gains are attributed to robust sales performance, defying the challenges posed by elevated interest rates.

Additionally, other sectoral indices have also witnessed substantial gains: Nifty Auto (38.62%), Nifty Energy (13.31%), Nifty PSU Bank (18%), and Nifty Pharma (26.93%).

Over 60% of Nifty 50 stocks posted double-digit returns

In the current year so far, a notable 32 out of Nifty 50 constituents have delivered double-digit returns, with auto stocks taking the lead. 

Also Read: Tata Motors shares hit all-time high ahead of Tata Technologies IPO listing date

Tata Motors takes the top spot with a stellar 83.62% gain, followed closely by Bajaj Auto (67.66%), NTPC (55.24%), Coal India (52.12%), Larsen and Toubro (47.84%), Hero MotoCorp (36.81%), and Dr. Reddy's Labs (34.87%).

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 29 Nov 2023, 05:32 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App