The start of the festive week of Diwali in the Indian stock market was no less than a big party. As soon as the market opened on Monday, Dalal Street witnessed a shopping spree. At the end of trading, the Bombay Stock Exchange Sensex closed at 75,692.78, a huge jump of 1,233.25 points or 1.66 percent. At the same time, the National Stock Exchange’s Nifty rose 387.70 points, or 1.68 percent, to 23,440.80.
Investors have earned 8 lakh crore rupees in one day
This stormy surge in the market filled the pockets of investors on the first day of the week. Today the total market cap of companies listed on BSE has increased to Rs. 4,82,41,458.47 crore, which on the previous trading day i.e. Friday was Rs. 4,74,37,038.61 crores. Thus, in a single day’s trading, BSE’s market cap was Rs. 8,04,419.86 crores is a huge increase. In terms of the market, with this increase on Monday, investors gained Rs. Has earned a huge amount of more than 8 lakh crores.
Nifty broke five-month high
The rise in the market on Monday was memorable in many ways. Both the major indices closed with gains of over one and a half percent. Nifty’s biggest intra-day gain has been seen since June 12 i.e. in almost 5 months. The rally pushed the Nifty to its highest level since September 23, its 6-week high. Banking stocks also fully supported the party, due to which the Bank Nifty managed to cross 55,000. Around 2668 stocks rose while 1469 stocks fell in the day’s trade. There was no change in the price of 162 shares. On the other hand, the Indian rupee also closed marginally higher at 94.90 against the US dollar, which had earlier closed at 94.95.
Shares of Reliance earned a bumper
The biggest engine of this surge was shares of Reliance Industries, which gave investors Rs. 8 lakh crore was earned. After the quarterly results, investors attacked the shares of this most valuable company in the country. In the last session on BSE, this share traded at Rs. closed at 1163.55. It opened at Rs 1,227.40, up more than 7 percent as the market opened on Monday. In the initial trading itself it was Rs. 1251.90 was reached. By the time markets closed, its shares had rocketed. Finally it closed with a strong increase of 11.60 percent to Rs. It closed at 1300.
Quarterly results showed buoyancy in the market
The reason behind this Diwali party in the market is the excellent quarterly results of the companies. According to the MOFSL report, the second quarter results so far have been in line with market expectations. Despite expensive raw materials and macro challenges, companies have seen overall growth. Companies covered by MOFSL have recorded the highest growth in the last 12 quarters. So far 35 Nifty companies have reported results, of which the growth is expected to be 22 percent. Reliance Industries, JSW Steel, ICICI Bank, Coal India, Axis Bank are major contributors to this.
Small cap companies shine
Sector-wise, BFSI, metals and oil-gas companies witnessed the highest growth. Only the healthcare and cement sectors have performed poorly. On the category front, small cap companies have fared best with a 34 per cent growth in their results. After this, 30 percent growth has been seen in large cap companies and 26 percent growth in mid cap companies. All categories of companies performed better than expected. A total of 43 percent of companies reported better-than-expected profits, while 24 percent of companies reported lower-than-expected profits.
