The stock market in India soared to new heights on Monday, bringing warmth to investors during the cold winter season.
The BSE Sensex soared past the remarkable milestone of 73,000, accompanied by the NSE Nifty surging beyond 22,000, igniting an unprecedented rally that will be remembered in history.
The 30-share BSE Sensex started off with a strong surge, soaring by 505.66 points to reach 73,074.11. The index surged ahead swiftly from there, reaching 73,288 during the day – its highest point ever.
By the end of the trading session, the Sensex recorded a gain of 613.30 points, reaching a level of 73,181.76. This exceptional performance showcases the optimistic investor sentiment and abundant liquidity in the market.
Nifty Conquers New Peak of 22K in Magnificent Ascent
In a show of strength, the NSE Nifty kicked off the day with a significant gain of 135.80 points, reaching 22,030.30. The 50-share index rose steadily throughout the day, reaching its peak at 22,082.
By the end of the trading session, Nifty stood at 22,062, successfully surpassing the significant milestone of 22,000 for the very first time. This reflects the positive market sentiment and solid underlying factors propelling indices upwards.
The rally witnessed a wide participation, as more than 2,160 shares moved higher compared to only 437 that declined. Wipro and Tech Mahindra, two major software companies, experienced significant gains, with Wipro soaring 8.78% and Tech Mahindra rising 4.92%. Infosys, HCL Tech, and TCS also recorded impressive gains in the IT sector.
Major players in the banking industry HDFC Bank and SBI experienced a significant increase. However, the HDFC twins and Reliance experienced a decline, which limited the overall gains of the index. PowerGrid, NTPC, and auto stocks such as Tata Motors were also among the notable losers.
Read More: Check Out Our Live Updates of Nifty 50 and Nifty Bank
Liquidity Surge, Retail Frenzy Propel Markets to Record Highs
Experts highlighted the robust FII inflows, positive Q3 earnings, and a surge of liquidity from retail investors as the main factors behind the remarkable market rally. There has been a significant increase in retail investment in stocks since the pandemic started.
Interest rates, hybrid working models, digital penetration, and pandemic savings have led to an increased risk appetite among retail investors. Their enthusiasm has injected energy into the markets, intensifying the upward momentum.
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Bull Run to Continue; Analysts Advise Caution at Higher Levels
Experts believe that the current bullish trend is likely to continue, despite concerns about high valuations. They anticipate the upward trend to persist in the near future, driven by ample liquidity, improving earnings, and optimistic Budget expectations.
However, valuations are becoming increasingly demanding and the margin of safety is shrinking. Markets may experience periods of profit booking and consolidation at higher levels. Experts advised investors to avoid getting too caught up in constantly changing their portfolios.
The buoyancy in Indian markets is expected to persist until 2023, driven by the surge in mega startup listings, the reopening of China, and the inflow of global funds. However, any external shocks or change in central bank stance could disrupt the momentum.
Investors need to carefully consider their return expectations given the current geopolitical and interest rate landscape. New retail investors should approach the bull run with caution and steer clear of riskier investments. Overall, markets appear ready to achieve more remarkable milestones in the coming years.