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Share Market: Investors mint almost Rs 3 lakh crore in a day as Sensex jumps 728 points

Indian stock markets experienced significant gains for the second consecutive day, with the Sensex surging 728 points and the Nifty closing near 20,100. The rally, attributed to a rise in banking, IT, and auto stocks, increased the wealth of investors by approximately Rs 2.11 lakh crore.

Share Market: Investors mint Rs 2.11 lakh crore in a day as Sensex jumps 728 points
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First Published Nov 29, 2023, 5:09 PM IST

In a significant turn of events, stock markets closed higher for the second consecutive day on Wednesday, November 29, driven by a spectacular rise in banking, IT, and auto stocks. The Sensex surged by an impressive 728 points, reaching a closing mark of 66,901.91, while the Nifty closed near 20,100. This surge resulted in a notable increase of nearly Rs 3 lakh crore in the wealth of stock market investors, CNBC reported

The rally was fueled by foreign fund inflows along with significant buying in market heavyweight HDFC Bank. In an unprecedented achievement for Indian equities, the combined market valuation of all listed companies on the BSE reached the USD 4-trillion milestone for the first time ever on Wednesday.

The 30-share BSE Sensex saw a substantial jump of 727.71 points or 1.10%, settling at 66,901.91 after commencing the day on a positive note. During the trading day, it witnessed a remarkable surge of 772.08 points or 1.16%, reaching 66,946.28. The Nifty also performed exceptionally well, climbing 206.90 points or 1.04% to reclaim the 20,000-mark after a gap of over two months, ultimately closing at 20,096.60.

Major gainers among Sensex firms included Axis Bank, Mahindra & Mahindra, Wipro, Tata Motors, HDFC Bank, Tech Mahindra, ICICI Bank, JSW Steel, Tata Consultancy Services, Infosys, HCL Technologies, and Bharti Airtel. However, Nestle, Titan, Bajaj Finserv, and UltraTech Cement were among the laggards.

In the global context, Asian markets in Seoul, Tokyo, Shanghai, and Hong Kong settled lower. European markets were mostly trading with gains, and the US markets ended marginally up on Tuesday.

Foreign Institutional Investors (FIIs) made significant purchases on Tuesday, buying equities worth Rs 783.82 crore, according to exchange data. The global oil benchmark, Brent crude, climbed 0.54% to reach USD 82.12 a barrel.

In the previous session, the BSE benchmark climbed 204.16 points or 0.31%, settling at 66,174.20, and the Nifty gained 95 points or 0.48% to 19,889.70.

Rupee Strengthens, Settles at 83.32 Against US Dollar

The Indian rupee sustained its gaining momentum for the second consecutive session, settling 2 paise higher at 83.32 (provisional) against the US dollar on Wednesday. This strengthening was supported by robust buying in equity markets and an inflow of foreign funds.

A weak US dollar against major rivals supported the domestic unit, while an upward movement in crude oil prices ahead of the crucial meeting of oil-producing countries capped the gain in the rupee, according to forex traders. At the interbank foreign exchange, the rupee opened stronger at 83.30 against the dollar, trading between the peak of 83.28 and the lowest level of 83.33 intra-day. It finally settled at 83.32 (provisional) against the greenback, up 2 paise over its previous close.

On Tuesday, the rupee rebounded from record low levels, settling 6 paise higher at 83.34 against the US dollar. Analysts expect the rupee to trade with a slight negative bias towards the end of the month.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, stated that the Indian rupee appreciated on positive domestic markets and foreign institutional investors' inflows over the past three consecutive sessions. He added, "Domestic markets surged ~1%. However, a slight recovery in the US dollar index and crude oil prices capped sharp gains."

Choudhary mentioned that the rupee is expected to trade with a slight negative bias on dollar demand from importers towards the end of the month. "Traders may take cues from GDP data from the US. Investors may also take cues from India’s GDP and fiscal deficit data towards the end of the month. USD-INR spot price is expected to trade in a range of Rs 83 to Rs 83.60."

Meanwhile, the dollar index, gauging the greenback’s strength against a basket of six currencies, was trading higher by 0.13% at 102.88. The global oil benchmark, Brent crude futures, surged 1.11% to USD 82.59 per barrel.

On the domestic equity market front, Sensex jumped 727.71 points, or 1.10%, to settle at 66,901.91 points. The Nifty climbed 206.90 points, or 1.04%, to 20,096.60 points. Foreign institutional investors

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