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  4. Nifty50 hits 20,000 as Dalal Street rallies for seventh straight day

Nifty50 hits 20,000 as Dalal Street rallies for seventh straight day

Nifty50 hits 20,000 as Dalal Street rallies for seventh straight day
  • The street seemed buoyant with enthusiasm over the G20 Summit and the Sensex ended 528 points in the green.
  • PSU companies were the big gainers – ITI was up 20%, IRCON was up more than 19%, SJVN up 19%, RVNL up 15%.The Nifty has recovered nearly 700 points from the recent lows of around 19,200.


The Indian benchmark indices, the Sensex and the Nifty, continued to rally for the seventh straight day on Dalal Street. The Nifty in the process managed to hit the coveted 20,000 mark and closed just a tad below it at 19,996. The Sensex too crossed the 67,000 points mark on Monday as the street seemed buoyant with enthusiasm over the G20 Summit and ended 528 points in the green.

Comment on Nifty hitting 20,000 mark, Pratik Gupta, CEO & Co-Head, Kotak Institutional Equities said, “What is really impressive about India’s NIFTY reaching this all-time high level is that it has been driven mainly by local flows in recent months, while FPI flow has been relatively subdued, partly due to limited global interest in Asia funds given the weak outlook for China which has a very high weightage in the region”.

Until last week, the Nifty 50 was under threat to fall below 19,000, but has staged a strong start to the September series, recovering nearly 700 points from the recent lows of around 19,200.

Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company analysed, “Nifty at 20,000 is part of a journey and not a destination. Sitaron se aage jahan aur bhi hai. Where yesterday Sensex was, today Nifty is. Where today Sensex is, tomorrow Nifty will be there for the long term investors. However in a momentum market one has to be cautious.”

Powergrid led the market gains up by more than 2%. PSU companies were the big gainers – ITI was up 20%, IRCON was up more than 19%, SJVN up 19%, RVNL up 15%.

Sonam Srivastava, smallcase manager & Founder of Wright Research said the Nifty's potential rise to 20K marks an encouraging phase in market dynamics, fueled by robust corporate earnings, encouraging global cues, and substantial foreign institutional investors' inflows.

This climb is largely triggered by the resurgence in IT and banking sectors and significant contributions from major players like Reliance Industries. The next achievable milestone could be around 20,500, provided the bullish momentum persists, Srivastava said.

The durability of this rally is contingent upon global and domestic economic recovery, corporate performance consistency, and monetary policy steadiness. Historically, Nifty's landmarks -- 1K, 5K, 10K, and 15K, were achieved due to economic liberalization, global liquidity, structural reforms, and digitization due to the pandemic. The current scenario mirrors these favourable conditions with buoyant markets, positive macroeconomic and global outlooks, coupled with potential for volatility and short-term price corrections, Srivastava added.




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