After the significant decline in October, where the Nifty 50 experienced its biggest monthly decline of 2.84% in CY23, the index showed remarkable resilience, staging a robust comeback in November. Impressively, within the last ten trading sessions, the index has recovered all the losses made in the previous month.
Looking at the overall performance in November, the index is up 3.59% year to date, with much of the rally occurring in the last two trading sessions. The November gain represents the index’s most impressive monthly performance since April 2023, signaling a remarkable shift in market dynamics and renewed investor confidence.
Also Read: Stock Market Today: Nifty 50, Sensex rise for second straight day; investors pocket almost ₹5 lakh crore in two sessions
In the previous trading session, the Nifty 50 exhibited a remarkable rally of 1.19%. In today’s session, the bullish momentum continued as it further gained 0.46%, reaching a level of 19,765.20, approaching the crucial 20,000 mark.
This rally was fueled by positive global and domestic indicators, with notable factors including the drop in US inflation to 3.2% in October. This development increased optimism about a more measured approach by the US Federal Reserve to future rates.
Also Read: RBI is likely to maintain a hawkish stance, keep rates unchanged in the near term
The drop in US 10-year yields to 4.5% and a large drop in the US Dollar Index further contributed to the market’s bullish momentum. In India, October’s Consumer Price Index (CPI) inflation fell to 4.87%, the lowest in four months.
Additionally, falling prices of crude oil (Brent Crude), down 5.91% in October and an additional 4.56% this month, provided support to the markets. In particular, Brent crude futures fell 1.56% in the previous trading session due to the larger than expected increase in US crude inventories.
Also Read: Oil prices fall on record rise in US crude inventories, demand concerns; Brent at $81/bbl
Foreign institutional investors (FIIs), on the other hand, turned net buyers on Wednesday after a series of selling sessions.
Among sectoral indices, the Nifty IT index experienced significant growth due to easing inflation concerns in the US and the UK. This development has instilled confidence among investors, leading to expectations of increased demand from these regions. Considering that a large part of the income of IT companies is closely linked to the American and British markets, this positive feeling had a remarkable effect.
Over the last two trading sessions, the Nifty IT Index registered an impressive rally of 5.34%, reaching the 32,273 level, coming close to the 52-week high of 33,402. Remarkably, all 10 components of the index ended the last sessions in positive territory.
Also Read: Nifty IT gains 2.35% on fall in US inflation; Persistent Systems achieves record
Commenting on the recent performance of Indian markets Vinod Nair, Head of Research at Geojit Financial Services, said, “The Indian market has continued its positive recovery, tracking global gains. Softer than expected US inflation data and lower bond yields have gained optimism that spending will be. appear as in technology.”
“Taking the signals further, IT stocks have shown a significant jump in the broader market. The market feels that export-based sectors like IT and pharma could be future winners. While a cut in inflation will also benefit domestic fundamentals and consumer sector,” he added
Disclaimer: The opinions and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Updated: 16 Nov 2023, 16:24 IST
(tagsTranslate)Nifty 50