Stock market continues bull run, led by robust economic indicators and favorable global cues
Feb 13, 2024
Mumbai (Maharashtra) [India], February 13 : The stock market continued its upward trajectory on Tuesday, concluding the trading session on a positive note. Both benchmark indices witnessed gains, buoyed by optimistic economic indicators and favorable global cues.
The Sensex surged by 482.70 points, closing at 71,555.19, while the Nifty climbed by 127.20 points to settle at 21,743.25.
The positive momentum was reflected in the performance of Nifty companies, with 39 firms advancing and only 11 declining.
Notable gainers among Nifty companies included Coal India, UPL, Axis Bank, ICICI Bank, and HDFC Bank, while Hindalco, Grasim, Divi's Lab, Ultra Cement, and BPCL faced declines.
The positive sentiment in the Indian market was largely attributed to robust industrial output data and a decline in retail inflation, signaling encouraging economic growth prospects.
Additionally, Morgan Stanley Capital International's (MSCI) decision to increase India's weightage in its Global Standard (Emerging Markets) index to a historic 18.2 per cent raised expectations for heightened capital inflows into the country.
Varun Aggarwal, founder and managing director, said, "The initial trading session saw broad-based gains, particularly driven by large-cap stocks. However, certain stocks experienced declines, with Hindalco notably dropping by 14 per cent. Nonetheless, overall market sentiment remained bullish, supported by optimistic economic indicators and favorable global cues".
In European markets, shares declined marginally as investors adopted a cautious stance ahead of crucial U.S. consumer price data, which would influence the Federal Reserve's interest rate decisions.
The pan-European STOXX 600 (European stock index) index retreated by 0.2 per cent, with technology shares notably facing declines.
Aggarwal added, "Asian markets exhibited strength, with Japan's Nikkei share average reaching a fresh 34-year high and South Korean shares surging to a six-week high. Japan's Nikkei closed at 37,963.97 points, driven by tech-related shares and strong corporate earnings, while South Korea's KOSPI closed up by 1.12 per cent at 2,649.64 points, primarily led by heavyweight chipmakers".
Overall, the Indian stock market's positive performance reflects investor confidence in the country's economic outlook and growth potential, amidst encouraging domestic and global factors.
