Leaders Online: The stock market witnessed a record-breaking rally in the Friday trade today on the back of GDP growth and positive global cues. In today's trade, the Sensex rose by over 1,300 points to 73,800. This is the all-time high of the Sensex. The Sensex then rose 1,245 points to close at 73,745. Today's increase of Sensex is 1.72 percent. While the Nifty today touched an all-time high of 22,353 points intraday. Subsequently, the Nifty 50 index rose by 355 points or 1.62 percent to close at 22,338.
At the sectoral level, the metal index rose by 3 percent. Banks, capital goods, oil and gas rose 2 percent each. On the other hand, the health care index fell by 1 percent and the IT index by 0.5 percent. The BSE Smallcap index gained 0.8 percent and the Smallcap gained 0.6 percent.
4.15 lakh crores earned by investors
The market capitalization of BSE listed companies increased by Rs 4.15 lakh crore due to today's record breaking rally in the market. This means that the investors got a profit of 4.15 lakh crores. The market capitalization of BSE listed companies on February 29 was Rs 3,87,95,690.23 crore. It reached 3,92,10,979.13 crore today on March 1.
Tata Steel Shares Top Gainers
Sensex opened at 72,606 today. It then hit a new high of 73,800. Shares of Tata Steel were the top gainers on the Sensex. The shares rose by as much as 6 percent to Rs. 149. Shares of LT, JSW Steel, Titan, IndusInd Bank, ICICI Bank, Maruti, SBI, NTPC, Ultratech Cement, Axis Bank, Kotak Bank, HDFC Bank, Reliance, M&M gained between 2-4 percent. While the shares of HCL Tech, Infosys, Sun Pharma fell.
While the Nifty 50 index opened at 22,048 today. It then increased to 22,353. Top gainers on Nifty were Tata Steel, LT, JSW Steel, Titan, IndusInd Bank. So Dr. Shares of Reddy's, Sun Pharma, HCL Tech, Infosys fell. Nifty Bank, Nifty Financial Services rose over 2 percent.
1. Strong economy, increase in GDP
The central government has informed that India's GDP rate rose to 8.4 percent in the quarter ended December 31, 2023. The government has said that the country's GDP will increase to 7.6 percent in the current year 2023-24. In the wake of the Lok Sabha elections, the Central Statistics Office (NSO) released the GDP report on Thursday. According to it, India's growth rate in the last financial year stood at 7 percent. The growth rate has reached 8.4 percent in the quarter ended December 31. For the first time in the last one and a half years, the GDP has reached a high level. The GDP in October-December quarter is higher than last year's GDP rate. The GDP had reached 7.6 percent in the last three years. The growth rate will be better than the Reserve Bank of India's estimate. It has also been said that the current year will see boom in the construction and manufacturing sector, which will help to boost the development rate. After the NSO report, Prime Minister Narendra Modi had expressed his reaction that the Indian economy is strong from the statistics department's data.
2. Decline in US inflation
Hopes of an interest rate cut by the Federal Reserve in June remain as inflation in the US continues to ease. Inflation in the US has decreased by 2.4 percent till January.
3. Global markets are also buoyant
The S&P 500 and Nasdaq Composite indices in the US stock market closed at high levels yesterday on Thursday. After the indices in the US closed higher yesterday, positive trends were seen in the Asian markets as well. Japan's Nikkei hit a new record high on Friday. China's CSI 300 index rose 0.2 percent after the factory data. The Hang Seng index of Hong Kong also rose.
4. Foreign investors' emphasis on buying again
Foreign institutional investors are showing a buying mood in the Indian market. On Thursday, foreign investors bought shares worth Rs 3,568 crore, while domestic institutional investors sold shares worth Rs 230 crore. After withdrawing around Rs 25,000 crore from the domestic stock market in the previous month, he bought Indian shares worth Rs 5,107 crore in February.
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