Investors' wealth has gone up by Rs 3.86 lakh crore in two days of market rise
Investors' wealth has gone up by Rs 3.86 lakh crore in two days of market rise where the Sensex has gained 872 points after the decisive mandate for the BJP in the general election.
The 30-share BSE key index has gained 871.9 points in two days. The Sensex Monday closed 248.57 points higher at 39,683.29.
Led by the rally in the equity market, the market capitalisation (m-cap) of BSE-listed companies rose by Rs 3,86,220.41 crore to Rs 1,54,11,395.90 crore on the BSE.
At the close of trade on Thursday, the market valuation of BSE-listed firms was Rs 1,50,25,175.49 crore.
The Sensex had hit its all-time high of 40,124.96 during the trade on May 23, the day election results were announced.
Hemang Jani, Head (Advisory), Sharekhan by BNP Paribas said, "Indian markets end the day on a positive note. The markets continue their upward trend supported by FII (foreign institutional investor) buying in the past two consecutive trading days. The current government wining the general elections by a two-thirds of majority will clam the political environment in the country."
He said slowdown in global growth, US-China trade war along with rise in oil prices pose an immediate threat to domestic markets.
"However, post the elections, we now expect the market to revert to fundamental issues such as earnings growth," Jani added.
From the 30-share pack, 17 scrips gained led by Tata Steel, YES Bank, NTPC, Larsen and Toubro, Axis Bank and State Bank of India.
Among sectoral indices, the BSE capital goods, power, industrials, utilities, metal and realty indices rallied up to 3.06 per cent.
In the broader market, the S&P BSE Midcap index gained 1.13 per cent and BSE Smallcap 1.77 per cent.
On the BSE, 1,793 scrips advanced, while 785 declined and 188 remained unchanged.
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