After weeks of waiting, agony and near-misses, benchmark Nifty finally breached the historic 20,000-mark on September 11 as investors piled into stocks amid robust economic growth and earnings expansion despite lacklustre global cues.
Here is a snapshot of Nifty’s gravity-defying journey:
1. Time Taken
The index took 51 sessions to climb from 19,000 to the 20,000-level. This was more than double the time taken for climbing 1,000 points at the height of its scorching post-Covid rally in 2021, but the index has picked up pace compared to last year.
2. FII Trend
The robustness of this rally can be gauged from the fact that Nifty has marched to its lifetime high despite foreign investors selling around USD 800 million worth of stocks in the last four sessions.
Nevertheless, looking at the overall trend since last year, FIIs have returned to Indian equities with a vengeance.
“I feel that the consistent investments from FII, DIIs, and Indian retail investors have pushed Indian indices to reach historic highs. Regarding the recent factors contributing to the Indian stock market's upward trend, it appears that the remarkable achievements of the G20 summit have also drawn the attention of global investors towards the Indian markets,” said from Suman Bannerjee, CIO of Hedonova, a US-based hedge fund.
Also Read: With Nifty at 20k, this sector enjoys maximum bullishness
3. Retail investor participation
In a sign of growing retail participation in the markets, the number of demat accounts opened in August totalled over 31 lakh, marking the highest account opening rate since January 2022.
This compares with 29.7 lakh additions a month ago and 21 lakh a year ago. The total demat tally crossed 12.66 crore, up 2.51 percent from a month ago and 25.83 percent from a year ago.
A few analysts said a surge in IPO listings, which averaged around 35 percent to 40 percent returns, attracted many new participants. Also, mutual funds have outperformed benchmark indices, offering higher returns than traditional saving schemes, drawing both passive and active interest from the public.
Also Read: As Nifty scales 20k, derivatives outlook show index marching on to higher peaks
4. Global Leaderboard
The Indian markets have rebounded smartly from their March lows, and are among the top performers globally.
“Strengthening of India’s positioning in the global arena along with a resilient economy would keep the earnings growth robust and provide fuel to the market. Recently, large caps seemed to have taken a pause while a rally was seen in the broader market.
"But now large caps too have slowly started participating and thus going ahead we can expect the up-move to be led by both large caps and mid-small caps,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
5. Sectoral Standing
Not just the benchmark, a bunch of sectoral indices too have scaled their all-time highs, including manufacturing, CPSE, Auto, PSU Bank, Infra, among others.
"The last few days, where weeks have happened in just a few days, are testimony to the undertone of this Bull Market. The good thing is there new leadership from IT, Capital Goods and PSEs. BFSI which remained under most pressure is back to positive territory. We are on track to hit 20,432 this month and 21,000 by Diwali," said Rahul Sharma, Director, Head- Technical & Derivative Research, JM Financial Services.
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