Investor wealth jumps over Rs6 trillion in three days of market rally

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Investor wealth surged 6.39 trillion in three days as global support continued to pour in to boost efforts to curb the spread of new coronavirus cases and speed up vaccination.

In the last three days, the benchmark index, Sensex gained 1855.39 points or 3.88% to close at 49733.84 and the broader index, Nifty gained 532.2 points or 3.65% to close at 14864.55.

Driven by the rally, the market capitalisation of BSE-listed companies soared 6.39 trillion to 208.76 trillion in three trading days.

“Markets extended gains for the third consecutive session, in continuation to prevailing buoyancy around the earnings season. Despite caution amongst global peers ahead of the Federal Open Market Committee (FOMC) meet, the benchmark opened gap-up and continues to surge higher, markets will first react to FOMC meet outcome in early trade on Thursday and then focus would shift to the monthly derivatives expiry and earnings,” Ajit Mishra, VP – Research, Religare Broking Ltd said.

Bajaj Finance was the lead gainer among the Sensex pack, rising 8.32%. IndusInd Bank climbed 5.08%, Bajaj Finserv (4.03%), ICICI Bank (3.72%) and Kotak Mahindra Bank (3.52%).

On the other hand, Nestle India, HCL Tech, Larsen & Toubro, TCS, Dr Reddy’s and ITC were the laggards.

“Market sentiment has been boosted by a set of strong results and continuing strong momentum in global markets, which has over-shadowed concerns over economic activity arising from renewed lockdowns and the second wave of covid-19 infections” S Hariharan, Head – Sales Trading, Emkay Global Financial Services said.

From the broader market, the BSE midcap and smallcap fell by 0.99% and 0.71%, respectively.

BSE sectoral indices closed on a positive note with Bankex, Finance, Auto, Telecom Consumer Discretionary, and Consumer Durables rallying up to 3%.

Market breadth was positive with 1,792 stocks ending higher against 1173 ending lower on BSE. 179 stocks were unchanged. Number of shares rising to their 52-week highs stood at 239 against 35 touching their 52-week lows. Tracking the positive sentiment in the market, 310 stocks hit their upper circuits against 207 falling to their lower circuits, respectively.

Foreign institutional investors have net bought $5.95 billion in equity and sold $2.12 billion in debt since the beginning calendar year, while domestic institutional investors have net sold 12,948.76 crore worth of stocks, according to data on the exchanges.

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