stock market
The stock market witnessed an increase for the fourth consecutive day. In these four days, there was an increase of about Rs 23 lakh crore in the market cap of BSE. Due to which the market cap of the stock market once again crossed 5 trillion dollars. The main reasons for the rise in the stock market are the peace agreement between the US and Iran and softening of crude oil prices. If experts are to be believed, we may see further growth in the stock market in the coming days. Before this, there was a continuous decline in Sensex and Nifty. India’s stock market had lagged behind Taiwan and South Korea in terms of market cap. Due to which the concerns of investors had increased even more. Now that Iran tension has reduced, due to that the stock market has seen a rise.
Tremendous rise in stock market
There has been a good rise in the stock market in four trading days. Both Sensex and Nifty have seen a rise of 4.50 percent. In these four trading days, Bombay Stock Exchange’s main index Sensex rose by 3,323.07 points or 4.50 percent. On the other hand, the main index of National Stock Exchange Nifty 50 increased by 924.1 points or 3.98 percent. On Wednesday, the 30-share BSE Sensex closed at 77,155.62, up 347.14 points or 0.45 per cent. The 50-share NSE Nifty closed at 24,085.70, up 96.55 points or 0.40 percent.
Market cap crosses $5 trillion
Stock market investors have made huge profits in these four trading days. In fact, this earning is related to the market cap of BSE, which has once again crossed 5 trillion dollars. If we look at the data, the market cap of BSE on June 11 was Rs 4,52,33,780.45 crore, which increased to Rs 4,75,12,374.27 crore today. This means that during this period an increase of Rs 22,78,593.82 crore has been seen in the market cap of BSE. If we talk about Wednesday, an increase of Rs 2,87,511.21 crore has been seen in the market cap of BSE. Whereas a day earlier the market cap of BSE was Rs 4,72,24,863.06 crore.
Siddharth Khemka, Head of Wealth Management Research at Motilal Oswal Financial Services Limited, said that the sharp fall in crude oil prices has improved the sentiment, which has reduced concerns about inflation and external sector pressure. Low crude oil prices have a positive impact on oil marketing companies and broader market sentiment as it has a positive impact on inflation, fuel costs and India’s current account balance.
Which companies got the biggest relief?
Among the 30 Sensex companies, Trent saw the highest increase of 7.06 percent. Bharat Electronics, Eternal, Tata Steel, Infosys, Tech Mahindra and Bharti Airtel were also among the gainers. Bajaj Finserv, Axis Bank, Kotak Mahindra Bank and Maruti were among the laggard companies. Global oil benchmark, Brent crude traded at around $79.10 per barrel.
Vinod Nair, Research Head, Geojit Investments Limited, said that due to reduced geopolitical tension around the Strait of Hormuz, crude oil prices have remained weak, due to which investors are enthusiastic. Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said easing geopolitical tensions have helped remove the risk premium that had weighed on markets during the conflict, creating a favorable environment for equities.
