A surge in the Indian stock market marked a triumphant session as BSE Sensex leaped over 1,000 points, achieving a fresh record high of 73,574. The rally extended to the Nifty50, which also established a new zenith by surpassing the 22,300 threshold. This exceptional market performance was underpinned by the burgeoning market capitalization of all listed companies on BSE which swelled by Rs 3.23 lakh crore, culminating at a grand total of Rs 391.18 lakh crore.
Various sectors witnessed solid gains, with Nifty Auto climbing 1.2% in anticipation of February sales data. Simultaneously, Nifty Metal, PSU Bank, and Oil & Gas indices each ascended over 1%. The uptick persisted through the broader market as seen in the Nifty Midcap100 and Nifty Smallcap100 indices which increased by 0.56% and 0.74%, respectively.
India’s robust economic performance became a pillar of strength for the market, with the Q3 GDP growing at a vigorous rate of 8.4% in the October-December quarter. This was not only the fastest pace observed in six quarters but it also exceeded estimates, fueled by a solid manufacturing and construction sector.
The positive sentiment spilled over from Wall Street, where the US stock indices, S&P 500 and Nasdaq Composite, closed at record highs. The pleasing US inflation data, which aligned with expectations, bolstered confidence in the forthcoming monetary policy, maintaining the likelihood of a rate cut in June by the Federal Reserve. Furthermore, Japan’s Nikkei index rode the waves of optimism, reaching record heights amidst the reassuring global economic indicators.
The actions of foreign investors underscored the prevailing market confidence, as they net invested Rs 3,568 crore on the preceding Thursday. Their presence has been significant recently, marking a recovery with net purchases worth Rs 5,107 crore in February, following a withdrawal of over Rs 25,000 crore the month before. It’s interesting to note that over the past decade, foreign investors have demonstrated a propensity to buy Indian stocks in March in eight out of ten years.
Another highlight of the financial landscape is the public issue of Bharat Highways Infrastructure Investment Trust (InvIT), which attained full subscription on its final day, signifying robust investor interest. Although institutional investors showed modest engagement with a 2 percent subscription of their 5.6 crore share quota, the trust managed to attract enough bids to cover its 10.3 crore unit offering. The goal is to amass Rs 2,500 crore for the portfolio of seven road assets. With the share price band set between Rs 98 to Rs 100 per unit, the complete subscription of the offer is indicative of sustained investor confidence in infrastructure projects.