Priyanka Tiwari
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Once again, the cumulative market cap of all BSE-listed companies has surpassed the $5 trillion mark, showcasing a strong recovery after almost three months. India’s equity market was last at this figure on January 20. This comes along with the recovery from $4.5 trillion on the April 7 mark, with over $500 billion added Value.
Rally Fueled by Broad-Based Gains
This recovery has been driven by gains across the board:
Sensex and Nifty: Close to 9% growth post April 7
BSE MidCap Index: Increased by 9.4%
BSE SmallCap Index: Increased by 10.65%
Nifty Bank: rose 11%
BSE PSU-Index: rose 10%
The more optimistic Vernon sentiment improved further once the U.S. reciprocal tariffs were paused, giving a positive response towards the progress in the trade relations and “risk-on” sentiment returned.
Foreign And Domestic Forces Projections Boost Optimism
The rally has been aided by:
De-escalation crude oil prices supporting easing inflation and trade deficit
Two to Three Per Cent Growth in Q1 Earnings Corporate Income Evaluation
More than 1 Billion Net Foreign Portfolio Investment Inflows In Two Sessions: NSDL data highlights
Positive changes during the visit of US Vice President JD Vance to India, likely to include trade discussions with PM Modi.
Expert’s Comments and Predictions
A Optimism Gap From Analyst Jumer “the rally showcased strong fundamentals paired with global tailwinds as well as reactivated investor sentiment” shared Vinit Bolinjkar, Head Of Research At Ventura. He went on to explain that in this steep bullish run, investors should remain cautious and watch international economic happenings and earnings outcomes.
IIFL Predicts Sustained Market Rally
The Broker IIFL Securities projects additional gains of approximately 5-10%, considering small caps have become appealing after post valuation corrections. They predicts momentum will continue along reduced prices of commodities and increase relative valuation compared to other emerging economies.
Technical Overview And Sectoral Trends
Nifty Is Forming A Range: Analysts identify a strong support in the zone from 21,900 to 23,800 which can lead to a potential target of 25,500 in 2 quarters.
Top Sectors:
Leaders: Financials, PSU banks, Metals, Telecom, Pharma and Consumption
Other Emerging Opportunities: IT, Capital Goods, Infrastructure
Although the rally is ongoing:
Sensex and Nifty still remain down by more than 7% from their 52 week high
BSE MidCap and SmallCap indices continue to stay 13.8% and 15.8% under their peak levels.
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