The market saw strength this week, with both the Nifty and Sensex recording gains of approximately 2%. Key players in this rally were prominent companies like HDFC Bank and Reliance Industries.
The Indian stock market witnessed a significant upswing again this week. The easing of tensions between Israel and Iran, along with reports of a ceasefire, created a sense of relief in markets worldwide. This had a direct impact on the Indian equity market, where the Sensex and Nifty showed strength for four consecutive sessions. This rally led to a substantial increase of approximately ₹11.3 lakh crore in investor wealth.
Strong Surge in Sensex and Nifty
On Friday, June 27th, the BSE Sensex closed at 84,058, a gain of 303 points. The NSE Nifty-50 also closed at 25,638, up 88 points. Throughout the week, both the Nifty and Sensex recorded gains of about 2 percent, strengthening investor sentiment.
The biggest contributors to this growth were दिग्गज stocks like Reliance Industries and HDFC Bank. HDFC Bank saw a 2.6 percent increase this week, pulling the financial sector up. On the other hand, the metal index showed a weekly jump of 4.8 percent, which was the highest among sectoral indices.
Ceasefire News Fuels Market Momentum
One of the biggest factors supporting the market this week was the announcement of a ceasefire between Iran and Israel. Following the announcement of this deal by US President Donald Trump on Monday, oil prices eased globally. This increased investors' risk appetite. Positive expectations regarding global trade also emerged.
The fall in oil prices directly affects inflation estimates, which reduces the likelihood of central banks tightening interest rates. The market mood this week was built on this confidence.
Gains in 11 out of 13 Sectoral Indices
This week, 11 out of 13 sectoral indices on the NSE saw gains. The best performance came from the metal and financial sectors. The metal index rose 4.8 percent, while the financial sector recorded a growth of 2.6 percent. Banking, infrastructure, and IT sectors also maintained a positive trend.
Significant Benefit for Retail Investors
The total market capitalization of companies listed on the BSE increased by ₹11,33,662 crore compared to the previous week. Last Friday, June 20th, the BSE's market cap was around ₹448 lakh crore, which surpassed the ₹460 lakh crore mark this Friday.
This clearly indicates that everyone, from retail investors to mutual funds and institutional investors, benefited greatly this week.
Momentum in Small-cap and Mid-cap Stocks as well
Not only large-cap stocks, but also mid-cap and small-cap shares witnessed b buying. This week, the small-cap index rose by about 4.3 percent and the mid-cap by 2.4 percent. This indicates that the market breadth remains b and investors are ready to take risks.
Focus on Jio Financial and Other Major Stocks
Looking at individual stocks, Jio Financial Services' shares rose 3.5 percent on Friday. The company has received regulatory approval for its stock broking unit, increasing investor expectations. Its share price has increased by about 10 percent this week.
Additionally, major stocks like Reliance, Tata Steel, JSW Steel, ICICI Bank, SBI, and Axis Bank also saw gains.
RBI Report Also Boosted Confidence
A recent report by the Reserve Bank of India has described India's economy as b. Positive signals have been given regarding the domestic market and banking system, despite global uncertainties. This has further increased investor confidence, especially that of domestic institutional investors.
Only 2.5% Away from All-Time High
The Sensex and Nifty are currently only 2.5 percent below their all-time highs. The highest levels the market achieved on September 27, 2024, do not seem far off now. If the current trend continues, the market could soon set new records.
The Market Trend This Week Remained Positive
During the week, the market closed positively in all four trading sessions. Traders and short-term investors took full advantage of this surge. Some buying was also seen from foreign investors, although their role has been limited so far.
In this way, the stock market has performed better than expected this week. News of global peace, domestic economic strength, and sector-specific strength have boosted the market. Investors' pockets have become heavier, and sentiment currently appears b.
