In a remarkable display of strength, the Sensex soared past the 74,000 mark after gaining over 1000 points in a widespread rally on Thursday, signaling bullish sentiments in the Indian stock market.
The Sensex, India’s leading stock index, was trading at an impressive 74,044 points, marking a notable increase of 1047 points or 1.44 percent from its previous close.
Key highlights of the rally include significant gains among Sensex stocks, with Bajaj Finserv leading the charge with a surge of over 4 percent, followed by Bajaj Finance and M&M climbing more than 3 percent each. Other notable gainers include SBI, Powergrid, and L&T, registering increases of 2.8 percent, 2.5 percent, and 2.3 percent respectively.
The bullish momentum extended beyond individual stocks, with over 50 percent of the stocks advancing on the BSE, reflecting the broad-based nature of the rally.
Commenting on the market outlook, Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, emphasized the strong uptrend witnessed in the Nifty index, which has surged from 17,360 to touch highs of 22,525 in the previous financial year 2023-2024, representing a remarkable 29 percent gain. Koothupalakkal further indicated the potential for upward movement with higher targets of 22,700 and 23,200 levels for the medium-term timeframe, while highlighting the crucial near-term support zone around 21,900 levels.
Echoing a similar sentiment, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, attributed the ongoing rally to substantial liquidity flows into the market. Vijayakumar noted that domestic institutional investors (DIIs) injected a massive Rs 24,373 crore into the market over the last seven trading days, underscoring the resilience of the market amidst prevailing uncertainties.
The confirmation of an upward directional move expected from early April, coupled with robust liquidity inflows, has bolstered investor confidence and propelled the market to new heights.
As the market continues its upward trajectory, investors remain optimistic about the potential for further gains, driven by favorable market dynamics and positive economic indicators.
