A week after seeing a major dip, the Indian stock market showed significant recovery on Monday after Sensex climbed more than 1200 points while Nifty saw a spike of nearly 400 points. One of the major reasons behind the stock market boom was Reliance Industries share prices hitting their all-time highs.
Both BSE Sensex and the Nifty 50 soared by 2 percent each on January 29, with Reliance Industries Limited and ONGC being the top gainers of the day. Two Adani companies – Adani Enterprises and Adani Group – saw a growth of over 4.5 percent each.
The cumulative market capitalisation of all the firms listed on the BSE stood at ₹371.1 lakh crore in the previous market session. As the markets closed on January 29, the market cap of these firms rose to ₹377.1 lakh crore.
Read More: Sensex up over 1200 points, closes at 71,941; Nifty at 21,740 points
Investors ended up gaining nearly ₹6 lakh crore through just one day’s trading session today, owing their single day gain to the top five stocks of the day – ONGC, Reliance Industries, Coal India, Adani Enterprises and Adani Ports.
The blue-chip NSE Nifty 50 index closed 1.80% higher at 21,737.60 and the S&P BSE Sensex ended 1.76% higher at 71,941.57 in their biggest one-day percentage gains since December 4, when the markets shot up over 2000 points.
Another reason associated to the spike of Indian markets today is the expectations linked to the interim Budget 2024, which will be presented on February 1 by Finance Minister Nirmala Sitharaman. While no big announcements will be made during the session, certain sectors such as tourism, renewable energy and power.
Besides that, the market also got a boost from strong cues from the rise in Asian markets, which were led by China after the country’s markets regulator said it would fully suspend the lending of restricted shares, in an attempt to stabilise its stock markets.
Financial services, which has the highest weightage among all sectors, added 1.56%. They had slid 6.3% in the last seven sessions after HDFC Bank’s disappointing results. HDFC Bank rose 1.34%.
(With inputs from Reuters)