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Equity investors in India have had a great week, with their wealth increasing by over Rs 10.43 lakh crore in the past five trading sessions, thanks to the winning momentum of the markets. This surge has been attributed to foreign fund inflows and stable global trends, and the market capitalisation of BSE-listed firms has surged to Rs 2,62,37,776.13 crore during this period.
The Indian Equity Market Performance
The equity markets have been performing well in recent times, with the benchmark indices rallying due to improved overseas fund inflows and positive global cues. Analysts believe that the gains are due to FII buying amid valuation comfort and signs of a worldwide peak in interest rates. Santosh Meena, Head of Research at Swastika Investmart Ltd, said, “The Indian equity market saw gains for the second week in a row after a protracted period of underperformance, thanks to stable global cues, FII buying amid valuation comfort, and signs of a worldwide peak in interest rates.”
The RBI’s Role
The Reserve Bank of India (RBI) has also played a crucial role in maintaining the equilibrium of growth and inflation. On Thursday, the BSE Sensex had climbed 143.66 points or 0.24 per cent to settle at 59,832.97 after the RBI unexpectedly kept the benchmark rate unchanged at 6.5 per cent. Umesh Kumar Mehta, CIO of SAMCO MF, said, “Equity markets had already started consolidating, but now since the interest rates are also near the peak cycle, it is an ideal launching pad of a new bull market locally and globally.”
It is important to note that equity markets were closed on Tuesday (April 4) for “Mahavir Jayanti“, and will be closed on Friday on account of “Good Friday“. Last week, stock markets were closed on Thursday for “Ram Navami“.
In conclusion, equity investors in India have had a profitable week, with markets continuing their winning momentum. This surge has been due to foreign fund inflows, stable global trends, and the RBI’s role in maintaining the equilibrium of growth and inflation. With equity markets expected to continue performing well, investors can look forward to more gains in the near future.