In an early trading session, the stock markets witnessed a shift in momentum, putting an end to a seven-day rally. The benchmark Sensex recorded a decline of 211.21 points, settling at 69,442.52. With a mere 346 points away from the 70,000 milestone, the Sensex showcased resilience and strength. Simultaneously, the broader Nifty neared the 21,000 mark by escalating 82.60 points, or 0.40 per cent, concluding at a fresh summit of 20,937.70. In intra-day trading, the Nifty achieved a high of 20,961.95.
Analysts attributed the ongoing market exuberance to the recent victories of the Bharatiya Janata Party (BJP) in three states, contributing to positive sentiment. Additionally, factors such as stable crude oil prices, anticipation of the Reserve Bank of India (RBI) maintaining interest rates in the upcoming Friday meeting, and heightened participation from foreign portfolio investors (FPIs) in December played pivotal roles.
FPIs exhibited robust engagement, making net investments of nearly Rs 26,759 crore this month, nearly three times the Rs 9,000 crore invested in the previous month. However, experts anticipate a moderation in FPI participation in the coming days due to the onset of the Christmas holidays.
While the ongoing market rally has notably benefited small and midcap stocks, analysts predict a shift in focus towards their large-cap counterparts. The optimism in the market continues to be underpinned by a confluence of factors, showcasing the resilience and upward trajectory of the Indian equity markets.
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