![Markets scale fresh peaks Markets scale fresh peaks](https://bsmedia.business-standard.com/_media/bs/img/article/2024-06/18/full/1718729856-5349.jpg?im=FitAndFill=(826,465))
Illustration: Binay Sinha
Benchmark indices reached new highs on Tuesday amid continued buying support from foreign portfolio investors (FPIs) and rising optimism about economic growth prospects. The S&P BSE Sensex ended the session at 77,301, up 308 points or 0.4 per cent, while the National Stock Exchange Nifty 50 gained 92 points, also 0.4 per cent, closing at 23,558. Nifty achieved intraday highs for the fourth consecutive trading session, and Sensex for the third.
The combined market capitalisation of BSE-listed firms also hit a record Rs 437.24 trillion ($5.24 trillion).
Both FPIs and domestic institutional investors were net buyers on Tuesday.
![chart chart](https://bsmedia.business-standard.com/_media/bs/img/article/2024-06/18/full/1718729919-1322.jpg)
The National Democratic Alliance (NDA) partners rallying behind Prime Minister Narendra Modi has ensured continuity in governance, boosting investor sentiment. Additionally, recent upgrades to India’s economic growth outlook have increased appeal among foreign investors.
Analysts emphasise the critical role of the NDA government’s continuity in ensuring policy stability. Coupled with political stability, sound macroeconomics, and earnings growth, these factors significantly contribute to the upward trajectory of stocks, providing reassurance and market security for the future, they noted.
Fitch Ratings raised India’s growth forecast for the current financial year to 7.2 per cent, up from 7 per cent projected in March, citing a recovery in consumer spending and increased investment as contributing factors.
“Indian equities are trading at all-time highs driven by positive macros and US markets reaching new peaks. Additionally, a 27 per cent growth in advance direct tax receipts for the first quarter of 2024-25 supported sentiment. We expect continued equity momentum driven by positive global trends, robust domestic macros, and expectations of increased government spending in the upcoming Budget,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
Tuesday’s gains were broad-based, with the Nifty Midcap 100 and the Nifty Smallcap 100 reaching new highs. Market breadth was strong, with 2,130 stocks advancing and 1,873 declining.
“The markets are responding positively to the upcoming Budget, expected to balance growth with populism. Positive cues from global markets, as the US moves towards its presidential election in November, are also influencing sentiment. Reduced market volatility this month is contributing to a short-term trend,” noted Vinod Nair, head of research at Geojit Financial Services.
Defence stocks fortify gains
Shares of companies that operate in the defence sector rallied between 5 per cent and 20 per cent on Tuesday, buoyed by the government’s drive to increase defence exports. Shares of Paras Defence and Space Technologies hit their 20 per cent upper trading limit, Garden Reach Shipbuilders surged 13 per cent, Mazagon Dock Shipbuilders rose 7.5 per cent and Hindustan Aeronautics rose 6.3 per cent. Defence Minister Rajnath Singh has vowed to increase defence exports. Singh set an ambitious target to export over Rs 50,000 crore worth of defence equipment by 2028-29.
First Published: Jun 18 2024 | 9:22 PM IST
Note:- (Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. The content is auto-generated from a syndicated feed.))