Market Surges as Sensex Soars by 803 Points, Targets 65,000 with Exciting Influx of FPIs!

Backed by an impressive surge in foreign investor participation, Dalal Street witnessed yet another monumental rise in the sensex, propelling it to a new all-time high during the third session of this week. The sensex, fueled by robust buying, experienced a remarkable ascent of 803 points or 1.3%, culminating at an impressive 64,719 closing figure. Surpassing all previous records, the sensex peaked at an astounding 64,769 points, further heightening the sense of achievement.

The NSE (National Stock Exchange) mirrored this exuberance as the Nifty charted its own exceptional course, scaling unprecedented heights at 19,202 points before settling slightly lower at 19,189, still boasting an impressive gain of 217 points or 1.1%.

This incredible surge in the stock market witnessed over the course of the last three sessions amounted to a substantial growth of almost 1,750 points, representing a notable increase of 2.8% compared to the previous Friday's levels. The rally was largely driven by the stellar performance of the automobile and information technology sectors.

Additionally, the market capitalization measured by BSE (Bombay Stock Exchange) soared to new heights, registering a historic peak at an astounding Rs 299 lakh crore, a staggering increase of Rs 2.5 lakh crore in a single day, as reported by official data.

The primary impetus behind this remarkable rally has been the active involvement of foreign portfolio investors (FPIs), who have emerged as the driving force in the current market upswing. Over the past two sessions alone, FPIs have infused a substantial sum of more than Rs 21,000 crore into the Indian stock market, as confirmed by data from CDSL (Central Depository Services Limited) and BSE. This influx translates into a remarkable net inflow of over $2.5 billion, solidifying FPIs' strong presence in the market. It is worth noting that a significant portion of this inflow, amounting to approximately $1 billion, can be attributed to the block sales executed by the promoters of Adani Group to select US-based funds led by GQG Partners.

Market analysts have highlighted the impact of FPI support on the market's performance, underscoring that the absence of such support previously had hindered the indices from reaching new heights. Vinod Nair, the Head of Research at Geojit Financial Services, remarked on this matter, stating that "Lack of global support had restrained the Indian indices from pursuing their record highs earlier, despite the presence of a resilient domestic macroeconomic background." He further emphasized the positive factors, such as surprises in the global market and the advancement of the southwest monsoon, that contributed to the renewed strength and propelled the domestic market to achieve new milestones.

Overall, this recent surge in the stock market, propelled by foreign investor confidence and promising market indicators, has paved the way for unprecedented achievements, firmly establishing India's position as a thriving and resilient economic powerhouse.