Capital market stocks strongly surged on May 16, as Nifty sustained over the psychological mark of 25,000 despite facing volatility during the day, which boosted investor confidence in stock markets. The sharp rise in the stocks pushed the Nifty Capital Markets index higher over 2.5 percent to close at 4,055.
Stock markets had seen a significant rally in afternoon trade on May 15, with benchmark indices Sensex and Nifty surging to significant highs. Nifty crossed the 25,000-mark for the first time since October 17, 2024, snapping a 141-session wait and marking a fresh seven-month high.
The benchmarks however saw choppy trade today, with the indices ending the session with marginal losses. Sensex closed over 200 points lower at 82,330. Nifty was down 0.17 percent to end the session at 25,019.80, sustaining the crucial 25,000-level.
Notably, the boost in investor confidence was evident from the drop in India VIX, which measures volatility in the capital markets. India VIX fell over 2 percent to 16.55.
Angel One shares were the top gainer in the pack of capital market stocks, rising over 8.5 percent to close at a six-month high level of Rs 2,788 apiece. The stock has now extended gains for the fifth consecutive session this week.
Central Depository Services (CDSL) shares followed, surging nearly 6 percent to close at Rs 1,412.90 apiece. CAMS, Aditya Birla Sun Life AMC and Motilal Oswal Financial Services shares meanwhile rose over 4 percent each.
MCX shares jumped over 3 percent, while Bombay Stock Exchange (BSE) shares rose over 1 percent.
"Sustained FII inflows and stable global markets are further contributing to the positive sentiment. We continue to maintain our bullish outlook and recommend focusing on selective stock-picking," said Ajit Mishra from Religare Broking.
However, some analysts advice caution at such trading levels. Apurva Sheth, Head of Market Perspectives & Research at SAMCO Securities, said, "This isn't a bull market - it's a bull illusion. If you're not in the handful of heavyweight stocks pulling the index up, you're likely still in pain. So the next time someone says, 'Nifty's at 25k!', just ask 'Yes, but is your portfolio?'"
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
