Nifty Smashes Records
Positive global cues also helped indexes go higher, with Wall Street stocks closing in the green overnight and Asian markets also trading higher.
Benchmark indices Nifty and Sensex rose over 1% on March 1, driven by faster-than-expected domestic economic growth and in-line U.S. inflation data. The rally was fueled by positive global market cues, pushing Nifty closer to its all-time high. The Sensex was up 1,004.81 points or 1.39 percent at 73,505, while the Nifty was up 304.70 points or 1.39 percent at 22,287. Sectorally, Nifty Metal led the gains, rising over 2%, followed by Nifty Auto, Bank, Energy and Infra, which jumped up to 1.8%. Nifty Media led the losses, falling over 1%.
GDP No.
The Indian economy expanded by 8.4 percent in the October-December quarter, the strongest rate in six quarters and beyond expectations, boosted by strong manufacturing and construction activity.
“The primary factor impacting the market today is likely the higher-than-expected Q3 GDP growth rate of 8.4 percent. “The impressive GDP figures provide fundamental support to the bull market,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Higher values are justified.
Deepak Jasani, Head of Retail Research at HDFC Securities, told Moneycontrol that GDP statistics might be supportive of values. “Valuations-wise, we have been at a high level for a few months now,” he told reporters. The Nifty is now trading at a P/E ratio of 23.45. At these levels, the markets have most certainly already factored in the present economic expansion.
“Already, rather significant growth is included into present prices, and better-than-expected GDP data support the growth. This strengthens the case for values to continue in the present bullish range,” said Pawan Bharadia, managing director of Equitree PMS.
Positive global markets.
Positive global cues also helped indexes rise. Wall Street stocks finished in the green overnight, with the S&P 500 and Nasdaq Composite finishing at new highs after in-line U.S. inflation data maintained the possibility of a June rate decrease.
Meanwhile, in Asia, the Nikkei 225 set a new record, boosted by the Wall Street rally. Following manufacturing statistics, China’s CSI 300 climbed 0.2%, while Hong Kong’s Hang Seng market nudged higher.
Encouraging US inflation figures.
The in-line US inflation estimate helped market confidence by keeping the Federal Reserve’s rate decrease in June on track. Rate cuts entail greater liquidity in the market, and the prospect of the Fed cutting rates soon has improved investor confidence.
FIIs in purchasing mode.
Foreign investors net purchased shares for Rs 3,568 crore in the previous session, while local institutional investors sold shares worth Rs 230 crore. In the previous month, they purchased Indian shares worth Rs 5,107 crore after withdrawing more than Rs 25,000 crore from the local market. In the last decade, FIIs have bought domestic equities in March on eight times.
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Nifty Smashes Records Nifty Smashes Records Nifty Smashes Records Nifty Smashes Records Nifty Smashes Records