Bullish rally: Investors accumulate Rs 7.90 lakh crore in 5-day wealth surge

In a staggering display of market frenzy, equity investors have raked in an eye-popping Rs 7.90 lakh crore in just five days of the relentless rally in the Bombay Stock Exchange (BSE) Sensex. Fuelled by unrelenting foreign fund inflows and an overwhelmingly bullish sentiment among investors, the market surge shows no signs of slowing down.

Defying all odds, the BSE Sensex marked its fifth consecutive session of gains with the 30-share index going up by 274 points or 0.42 per cent, beating its own record and closing at an unprecedented high of 65,479.05 on Tuesday. And that's not all - during the day, the benchmark hit its lifetime intra-day peak, surging a mind-boggling 467.92 points or 0.71 per cent to touch an astronomical 65,672.97.

As investors revel in their newfound wealth, their fortunes have swelled by an astronomical Rs 7,90,235.84 crore during this whirlwind five-day rally. The market capitalisation of BSE-listed firms has ballooned to an unimaginable high of Rs 2,98,57,649.38 crore, defying expectations and leaving market analysts in awe.

Market observers said India had caught the fancy of foreign investors due to a combination of favourable macroeconomic factors. According to a report by IDBI Capital Markets and Securities Ltd., these factors include a robust GDP growth forecast for FY24E, expected to be in the range of 6 per cent to 6.5 per cent, surpassing global expectations. Additionally, inflation has moderated, with the Consumer Price Index (CPI) reaching its lowest level in 25 months at 4.25 per cent per cent in May 2023.

This decline can be attributed to the softening of commodity prices and improved supply chain dynamics. Furthermore, the repo rate, currently at 6.5 per cent, has stabilised after remaining unchanged in the last two meetings of the Reserve Bank of India (RBI). Collectively, these factors have contributed to India's regained charm among foreign investors.

With the Sensex soaring over 2,500 points in just five sessions, the bulls are firmly in control. Leading the charge on the Sensex chart was Bajaj Finance, leaving its competitors in the dust with an impressive surge of 7.17 per cent. Close behind, Bajaj Finserv also joined the party, rallying by a commendable 5.76 per cent.

The celebrations didn't end there as Tech Mahindra, Sun Pharma, NTPC, Titan, Wipro, Tata Consultancy Services, Kotak Mahindra Bank, Infosys, State Bank of India, and ITC have all hopped aboard the gains train.

Of course, not everyone has reason to cheer. Bharti Airtel, Axis Bank, Reliance Industries, IndusInd Bank, Tata Steel, and UltraTech Cement find themselves among the unfortunate laggards, grappling with the weight of missed opportunities.

While Asian markets grapple with mixed fortunes, with Shanghai and Hong Kong basking in the green while Seoul and Tokyo suffer losses, European equity markets are trading with mixed emotions during the mid-session deals. Meanwhile, the US markets managed to eke out gains on Monday, providing a glimmer of hope in an otherwise turbulent global landscape.

Amidst this frenzy, the global oil benchmark, Brent crude, has taken a leap of faith, climbing a remarkable 1.43 per cent to a staggering USD 75.72 per barrel.

Foreign Portfolio Investors (FPIs) have been seduced by the allure of Indian equities, pouring in a substantial Rs 2,134.33 crore on Tuesday alone, according to exchange data. In fact, June witnessed an incredible inflow of Rs 47,148 crore from FPIs, marking the highest surge in the past 10 months - a clear vote of confidence in the Indian market.

Shrikant Chouhan, Head of Research (Retail) at Kotak Securities Ltd., commented, "Buoyancy in the markets continued as benchmark indices touched new highs in spite of mixed Asian cues and weak European markets in early trades. The cushion provided by Indian markets on the back of its strong fundamentals is offsetting some of the negative catalysts seen in key developed economies, and the strong backing by the FIIs in recent weeks is a testimony to it."