Benchmark equity indices in India continued their remarkable rally, with the BSE Sensex surging past the 65,000 mark for the first time ever on Monday. The surge was driven by bullish global market trends and foreign fund inflows, resulting in the fourth consecutive day of gains. The NSE Nifty also achieved a significant milestone, reaching its lifetime high of 19,318 points. The strong performance of key stocks fueled the market rally, while certain sectors experienced minor setbacks.
The 30-share BSE Sensex soared by 449.46 points, reaching an all-time peak of 65,168.02 during early trading hours. Likewise, the NSE Nifty climbed 128.95 points, achieving its lifetime high of 19,318. Notable gainers in the Sensex pack included HDFC, HDFC Bank, Mahindra & Mahindra, UltraTech Cement, Tata Steel, Bajaj Finance, State Bank of India, Reliance Industries, Bajaj Finserv, and ICICI Bank. Conversely, Power Grid, Maruti, Tech Mahindra, IndusInd Bank, HCL Technologies, and Axis Bank were among the laggards.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong witnessed positive trading sessions, aligning with the overall bullish sentiment. Additionally, the U.S. markets closed significantly higher on June 30, further contributing to the positive global market trends.
Oil Prices and Foreign Fund Inflows
Global oil benchmark Brent crude experienced a marginal decline of 0.01 per cent, settling at $75.41 per barrel. Foreign Institutional Investors (FIIs) displayed a strong interest in the Indian equity market, purchasing equities worth ₹6,397.13 crores on June 30, according to exchange data. The sustained flow of foreign funds has been identified as a key driver behind the ongoing rally in the Indian market, with June witnessing inflows of ₹47,148 crores.
The Finance Ministry announced that Goods and Services Tax (GST) collections exceeded the ₹1.60 lakh crore mark for the fourth time since the introduction of the indirect tax regime. In June, GST collections rose by 12 per cent, surpassing ₹1.61 lakh crore. This increase reflects positive economic activity and further supports the bullish market sentiment.
The Indian Express cited V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, who explained that the ongoing rally in global stock markets could be primarily attributed to the unexpected strength of the U.S. economy, which achieved a 2 per cent GDP growth in Q1 2023. Despite the Federal Reserve implementing a significant 500 basis points rate hike, the U.S. economy has outperformed expectations. Global markets, which had previously anticipated a U.S. recession by mid-2023, are now adjusting their projections to compensate for the overly pessimistic outlook in 2022.
Vijayakumar further emphasized that sustained foreign portfolio investments (FPI) inflows, amounting to ₹47,148 crores in June, remain a key driver of the Indian market rally. The positive investor sentiment indicates growing confidence in the Indian economy and its potential for further growth.
(With Inputs from Agencies)
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