Here’s why Nifty broke the 16,000 barrier — Titan, HDFC, Nestle and Ultratech tell the story of the euphoria in the Indian stock market
- Indian stock market hit new highs today led by a rise in shares of banks, FMCG and IT stocks.
- Nifty 50 closed above historic high 16,000 points and Sensex closed above 53,500 points.
- Analysts believe strong performance by stocks like HDFC, IT stocks, SBI, which are heavyweights on Nifty 50 led the rally.
AdvertisementWhat is common between Titan, HDFC IndusInd Bank, Nestle India and Ultratech Cement? These are the top five gainers on the Nifty50, the benchmark index, that closed at a record level, above at 16,000, which had seemed to be a barrier even for the bulls in the market in recent months.
That a varied set of stocks, from a watch maker to a mortgage lender, a bank to a company that is known for its noodles and sauces, as well a cement maker fill up the top five positions on the bourses on a given day — it only tells us that the euphoria is widespread and not tied to a specific theme.
|Nifty 50 - Top gainers||Gains on Aug 3|
|State Banks of India||2.55%|
The Indian stock markets seem to be taking comfort over the improved economic conditions, better corporate earnings and rising consumer demand in certain sections of the society.
Nifty 50 closed above historic high 16,000 points and Sensex closed above 53,500 points.
These are some of the facts that led to this spectacular rally in the Indian stock market:
- Shares of Nifty 50 heavyweight HDFC surged nearly 4%, a day after its earnings, because the amount of defaults was much less than what the market had feared.
- Gross GST (goods and services tax) collection jumped 33% in July at ₹1,16,393 crore.
- 31 Nifty 50 companies, that have posted results so far, have shown 70% on year earnings growth against expected 64%, according to Motilal Oswal Financial Services report.
- India’s fiscal deficit narrowed to an 8-year low of ₹2.7 lakh crore in June quarter, helped by a rebound in revenues and lower spending.
- The country recorded its highest ever monthly exports worth $35.2 billion in July 2021, an increase of 47.91% from July 2020.
- Meanwhile, several states have been easing covid-19 restrictions as the numbers of covid cases on the national level has slowed down.
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