Investor wealth rises Rs15 trillion in 12 days as markets rally

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MUMBAI: Investors in Indian equity markets have become richer by Rs15 trillion in 12 trading sessions, with benchmark indices closing at a record high on Monday.

Over the last 12 sessions, Sensex and Nifty have gained 5.58% and 5.74%, respectively. On Monday, Sensex rose 0.44% to close at a record 52,328.51 while the Nifty ended at 15,761.60, up 0.58%.

Driven by the rally in equity markets, the market capitalisation of BSE-listed firms has zoomed to a record Rs229.01 trillion since 21 May.

“…News about the gradual reopening of the economy following the fall in Covid cases have boosted sentiments Volumes on the NSE were higher than recent averages..,” said Deepak Jasani, Head of Retail Research, HDFC Securities said.

On Monday, on the Sensex, PowerGrid and NTPC each rose more than 4%, followed by UltraTech Cement with 2.78% gains, Reliance Industries was up 1.68% and IndusInd Bank climbed 1.57%.

“…Nifty has once again closed at an all-time closing high accompanied by sharply positive advance decline ratio. High volumes on a positive day is good news. Continued flow of positive news on covid front could help sustain this upward momentum,” Jasani added.

In the broader market, BSE mid-cap and small-cap indices each rose by up to 1.38%.

Ajit Mishra, VP – Research, Religare Broking Ltd said, “Markets started the week on an optimistic note amid supportive global cues. The benchmark traded with positive bias throughout the day and healthy buying was seen across sectors. Further, the news of a steady fall in new COVID cases and announcements of easing in restrictions by several states boosted sentiment.”

The market breadth was positive on Monday, with 2,298 stocks ending higher and 1,024 ending lower on the BSE. About 564 stocks touched their 52-week highs while 35 touched 52-week lows. Tracking the positive sentiment in the market, 642 stocks hit their upper circuits.

Foreign institutional investors have net bought $6.97 billion in equities and sold $2.50 billion in debt since the beginning of the calendar year, while domestic institutional investors have net sold Rs10,950.10 crore worth of stocks, according to data on the exchanges.

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