Investors richer by more than ₹5.77 lakh crore as markets rally

Equity investors became richer by more than ₹5.77 lakh crore on June 21, helped by a rally in the broader market where the BSE benchmark jumped nearly 2%. The BSE Sensex zoomed 934.23 points or 1.81% to settle at 52,532.07.

Driven by the rally in equities, the market capitalisation of BSE-listed firms jumped by ₹5,77,006.83 crore to stand at ₹2,40,63,930.50 crore.

“Absence of fresh selling triggers in the domestic and global economy along with falling commodity prices relieved the heavily discounted equity market to showcase recovery. The recovery indicates that the current uncertainties of inflation and monetary policy tightening have been factored in,” said Vinod Nair, Head of Research at Geojit Financial Services.

“However, with the highly sensitive nature of the current equity market, even the slightest inconvenience can trigger volatility,” he added. From the global markets, Asian equities in Hong Kong, Tokyo and Seoul ended with smart gains, while Shanghai settled in the red. European markets were trading in the green in mid-session deals.

The U. S. markets were closed on June 20 for a holiday. “Markets extended rebound for the second consecutive session and gained nearly 2%, tracking firm global cues. After an upbeat start, the benchmark moved from strength to strength for most of the day, however marginal selling in the last hour trimmed some gains.

“This move has certainly eased some pressure but sustainability is the key,” said Ajit Mishra, VP, Research, Religare Broking Limted. From the Sensex pack, Titan, SBI, TCS, HCL Technologies, Dr Reddy’s, Tata Steel, Wipro, Infosys and ITC were the major gainers. Only Nestle India ended marginally lower.

In the broader market, the BSE smallcap gauge rallied 2.99% and the midcap index jumped 2.42%. All the BSE sectoral indices ended with gains, with oil & gas index jumping the most by 5.96%, followed by energy (4.95%), consumer durables (3.93%), metal (3.90%), realty (3.79%) and utilities (3.58%). As many as 2,502 stocks advanced and 831 declined, while 129 remained unchanged.