Stellar rally! Nifty 50 jumps 1,159 points in just 13 sessions

This success has significantly bolstered market confidence, anticipating a strong popular mandate for the ruling party in the upcoming 2024 Lok Sabha polls.

Adding to the bullish sentiment, the market rally finds support in the expectation that the US Federal Reserve will initiate rate cuts in the coming year. This outlook has led to a decline in the yield on the US 10-year Treasury to 4.2% in Friday’s trading, marking a three-month low.

Also Read: At record high! Sensex jumps 1,100 points, Nifty over 300 points: 5 reasons why

Buoyed by these favorable factors, the Nifty 50 commenced today’s trading at 20,601 points, reflecting a 1.64% gain compared to the previous closing of 20,267.90 and establishing a new peak at 20,602.50.  Taking the Nifty 50’s all-time high of 20,602.50 points into account, the index has jumped 1,159 points or 5.96% in just 13 sessions.

Also Read: Coal India, ICICI Bank amongst key Nifty gainers as Banks, Financials, Metals, Oil & Gas index lead the market rally

Following a downturn in October, the index showcased a strong recovery in November, posting a notable gain of 5.52%, marking the most impressive monthly surge since July 2022. The S&P BSE Sensex also touched a new record high of 68,587 points in today’s trading, surpassing its previous best of 67,927.

In the sectoral landscape, Nifty Auto, Nifty Infra, Nifty Energy, Nifty Metal and Nifty Pharma reached new all-time highs in today’s trade. Simultaneously, the momentum in mid and smallcaps continued, with the BSE MidCap and BSE SmallCap indices hitting fresh record highs.

On the specific stock front, Adani Enterprise, Adani Ports and SEZ are currently trading with gains of 6% and 5%, respectively. Meanwhile, shares of Coal India, Larsen & Toubro, NTPC, SBI, ICICI Bank, BPCL, ONGC, M&M, and Bharti Airtel are trading with gains of over 2%.

Also Read: Defence, railway stocks surge after BJP’s state election victory; HAL, BEL, Ircon hit 52-week high

Overall, 44 out of the Nifty 50 constituents are trading in the green. On the flip side, Maruti Suzuki shares are trading with a 1% decline, and other stocks such as Britannia Industries, HDFC Life Insurance, SBI Life Insurance, and Nestle India are trading with marginal cuts of 0.3-0.7%.

Today’s record rally has pushed the market capitalisation of the NSE-listed companies to $4.02 trillion mark. In the last trading session (Friday), the market capitalisation of the National Stock Exchange crossed the $4 trillion mark for the first time.

The top 3 companies by market capitalisation, including Reliance Industries, Tata Consultancy Services, and HDFC Bank remained the same when the market capitalisation hit the $2 trillion, $3 trillion, and $4 trillion mark.

“The journey of market capitalization of Indian listed companies from $2 trillion (July 2017) to $3 trillion (May 2021) took about 46 months, whereas the last $1 trillion, i.e., from $3 trillion to $4 trillion, took only about 30 months.”

“While the $4 trillion market capitalization is an important milestone, data suggests that only 0.35% of the total private companies registered with the Ministry of Corporate Affairs, Government of India, are listed on the exchanges, indicating an enormous number of companies that can tap the equity market for their funding needs,” NSE said in a press release on Sunday.

Before this, the combined market valuation of all listed companies on the BSE also reached the $4 trillion milestone for the first time ever on Wednesday (November 29).

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.