Bulls in Charge: Nifty Soars Beyond 20,260, Sensex Witnesses a Staggering 500 Point Surge

Nifty scales new heights, crossing 20,260 points in a powerful upward surge, reflecting strong momentum in the stock market
Markets Cheers on Early Gains
Markets Cheers on Early Gains

The Nifty index, comprising 50 stocks, achieved a record high of 20,276 in the morning trading session on December 1, following India's announcement of a robust 7.6 per cent GDP growth in the September quarter, surpassing expectations.

The return of a buying spree by Foreign Institutional Investors (FIIs) coupled with declining US bond yields significantly contributed to the rally in the equity markets. The positive momentum was further fueled by the euphoria surrounding recent Initial Public Offerings (IPOs), which consistently demonstrated strong performances, listing at higher-than-expected premiums.

"The Indian equity market is in a strong bullish mood and is hitting a fresh all-time high. We may continue our momentum and outperform our other global peers, backed by the strong fundamentals and under-ownership of FIIs," said Parth Nyati, Founder of Tradingo.

Surpassing expectations, India's GDP growth in the September quarter, outpaced the Reserve Bank of India's estimate (6.5 per cent). The upswing was majorly led by robust growth in the manufacturing sector. The BSE Sensex was in positive territory, recording a gain of over 500 points and surpassing the 67,500 mark.

Despite the current positive trend, analysts believe potential market volatility due to upcoming elections and geopolitical uncertainty in India. Investors are advised to stay vigilant amid these potential influencing factors.

"State election results may create some kind of volatility, but we are preparing ourselves for a pre-election rally. In terms of level, 21000 looks like an easy task in the near term for the Nifty," Nyati added.

As Asian markets exhibited mixed trading trends, the US markets experienced a strong rally on Thursday. The Dow surged by more than 500 points, attaining a new high for the year. This uptrend majorly resulted from favorable cooling inflation data.

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