Stock market opens at eight-month high as investors gain Rs 5.25 lakh crore
Benchmark indices Sensex and Nifty50 reached their highest opening levels since February on Wednesday following the Diwali break.
The BSE Sensex and NSE Nifty50 climbed to levels last seen in February on Wednesday, according to the Times of India. The Sensex opened at 82,250.52, up 1,143.87 points or 1.41 per cent, while the Nifty50 started at 25,337.80, gaining 293.15 points or 1.17 per cent.
The rally increased the total market capitalisation of BSE-listed companies to Rs 5,12,51,866 crore from Rs 5,07,26,775.40 crore in the previous session, making investors richer by approximately Rs 5.25 lakh crore. All 16 major sectoral indices opened higher, including the Nifty Private Bank index, which advanced 1.39 per cent.
Foreign institutional investors (FIIs) have returned to Indian equities with aggressive buying, investing Rs 53,170 crore in the first six trading sessions of the month. V K Vijayakumar, chief investment strategist at Geojit Investments, told ANI that the Nifty 50 has surged by 8.6 per cent in six trading days this month due to this FII buying and positive global cues.
Other factors supporting the market include easing crude oil prices and strong second-quarter earnings. Nifty 50 companies recorded nearly 24 per cent earnings growth in the second quarter, their highest in 12 quarters. Ponmudi R, CEO of Enrich Money, said Indian equities appear well positioned to extend their advance given moderated crude prices and revived foreign portfolio inflows.