Stock market scaled record closing highs led by financials

Stock market scaled record closing highs led by financials

Ira Singh
21 June’23

The equity market indices climbed record closing highs on Wednesday,aided by persistent foreign inflows into equities on the back of strong macroeconomic data.

The rally in the Indian equity markets started after March 28 and both the benchmark indices gained nearly 10 percent since then. Foreign investors have bought equities worth around $8.28 billion in this period, according to sources.

Falling inflation and improving fundamentals, including recent data on GST, PMI, auto, and domestic air- passenger numbers as well as accelerating gross domestic products (GDP) have boosted investor confidence, experts believe.India’s GDP forecasts are being upgraded, with the RBI projecting a 6.5 percent growth for FY24.

The RBI has also paused its rate hike campaign. And the rupee sees support from an improving current account deficit, which is trending near breakeven.

At close,the Sensex was up 195.45 points or 0.31 percent at 63,523.15, and the Nifty was up 40.10 points or 0.21 percent at 18,856.85.

Stocks and Sectors

Power Grid Corporation, ONGC, HDFC Bank, Adani Ports and HDFC were among the biggest gainers on the Nifty, while losers included JSW Steel, Hindalco Industries, M&M, Divis Laboratories and ITC.

On sectoral front,the metal index was down nearly 1 percent, the FMCG index fell by 0.4 percent and the realty index was down 0.3 percent, while the power index was up 1 percent and the oil & gas index rose 0.5 percent, according to sources.

The BSE midcap index rose 0.7 percent and smallcap index gained 0.2 percent.

On 21st June’23, the Indian rupee appreciates by 7 paise to close 82.02 against the US dollar.

Experts Take:
Economists, including experts believe-‘Despite hitting record highs, the domestic market failed to sustain its upward trajectory due to prevailing concerns over global issues and a delayed monsoon. Furthermore, market volatility was exacerbated by consecutive days of net selling by FIIs, while mid-cap stocks maintained their steady gains. Meanwhile, in the global market, sentiments were dampened as UK CPI inflation came in hotter than expected, adversely affecting investor confidence.’

Market experts have recommended six stocks to buy for Wednesday-DLF, HDFC Bank, Lemon Tree Hotels Ltd, Ugro Capital, Bajaj Auto and Larsen & Toubro (L&T).