Bharat stock indices saw a strong surge in trading on Tuesday, nearing their all-time highs. The Sensex and Nifty benchmarks were up by 0.7-0.8% from the previous Saturday’s closing. Among the Nifty 50 stocks, 39 showed gains, while 11 declined at the opening bell.
Leading the gainers were Cipla, ICICI Bank, Sun Pharma, Power Grid Corp, and Bharti Airtel. Meanwhile, Asian Paints, Hindustan Unilever, Britania, HDFC Bank, and BPCL were among the top losers, according to NSE data.
Monday’s closure, owing to the Pran Pratistha of Ram Temple in Ayodhya, didn’t deter the momentum. India’s stock market overtook Hong Kong, becoming the fourth-highest equity market globally. The combined value of shares listed on Bharat exchanges reached USD 4.33 trillion, surpassing Hong Kong’s USD 4.29 trillion.
Bharat achieved a significant milestone on December 5, 2023, when its stock market capitalization crossed USD 4 trillion for the first time. Approximately half of this value has been added in the past four years. Despite some turbulence, the calendar year 2023 saw impressive gains of 17-18% for Sensex and Nifty, compared to a modest 3-4% each in 2022.
The top three stock markets globally remain the US, China, and Japan. Notably, Hong Kong’s Hang Seng Index faced a cumulative decline of 32-33% over the past year.
Bharat’s stock market success is attributed to a robust GDP growth forecast, manageable inflation levels, political stability at the central government level, and indications that central banks worldwide have concluded their monetary policy tightening. Many agencies have dubbed Bharat as the fastest-growing major economy.
A significant factor contributing to the rally is the strong inflow of funds from foreign portfolio investors (FPIs). These investors have once again become net buyers in Bharat’s stock market, propelling the benchmark indices to new highs.
Interestingly, Bharat’s surge in stock performance coincided with a historic slump in Hong Kong. The Asian financial hub, known for hosting some of China’s influential firms, has seen a decline in new listings, losing its status as one of the world’s busiest venues for initial public offerings (IPOs).
In summary, Bharat’s stock market is riding high on a combination of domestic factors, foreign investments, and global contrasts, making it a noteworthy player in the global financial landscape.
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