Indian Stock Market Hits New Highs, Sensex and Nifty 50 Surge After Election-Related Losses
The Indian stock market witnessed a remarkable turnaround on Friday as the domestic benchmark indices, the Sensex and Nifty 50, finished at new highs, erasing election-related losses and pointing towards greater economic growth.
The NSE Nifty 50 closed up 2.05% at 23,290.15 points, while the S&P BSE Sensex rose 2.16% to 76,693.36. This surge comes after a week of volatility following the general elections, where Prime Minister Narendra Modi’s alliance secured a narrow victory.
The Nifty 50 gained 3.4% this week, while the Sensex climbed 3.7%, recovering all losses from earlier in the week. The positive market sentiment was further bolstered by the Reserve Bank of India raising its GDP growth forecast for the current fiscal year to 7.2% from 7%.
In global news, the US economy also showed strength with better-than-expected job growth in May, leading to an increase in annual wage growth. This positive economic data has implications for the Federal Reserve’s interest rate decisions in the coming months.
Looking ahead, market analysts are keeping a close watch on key factors such as the US Fed interest rate decision, the movement of the rupee against the dollar, crude oil prices, and commodity prices. Additionally, investments by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will be closely monitored for market trends.
For investors looking to capitalize on the current market momentum, financial expert Sumeet Bagadia has recommended three stocks for Monday – Tech Mahindra Ltd, UltraTech Cement Ltd, and Dr Reddy’s Laboratories Ltd.
Tech Mahindra Ltd has shown strong resilience and breakout potential, while UltraTech Cement Ltd and Dr Reddy’s Laboratories Ltd have displayed positive technical indicators for potential upward movement.
Overall, the Indian stock market’s recent performance reflects a positive outlook for economic growth and investor confidence. As always, investors are advised to consult with certified experts before making any investment decisions.
