The benchmark indices concluded the day with strong gains on Wednesday. The BSE Sensex witnessed an increase of 727.70 points, equivalent to 1.10 percent, settling at 66,901.91. While, the NSE Nifty rose by 206.90 points or 1.04 percent, closing the day at 20,096.60.
Adding to the rally was the euphoria around the Bombay Stock Exchange (BSE) reaching a significant milestone as its market capitalization surpassed the $4 trillion threshold for the first time in history.
"This expansion is poised to sustain momentum as the prospect of foreign investors redirecting their investments towards India, spurred by this dovish stance, serves as a compelling catalyst for the continued growth of the Indian equity market," Says Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd.
The upswing in positive sentiment is also linked to recent upgrades from global brokerages and strong Q2 earnings reports.
After a selling trend in September and October, foreign institutional investors reversed course in November by actively purchasing Indian equities. This shift has further contributed to the optimistic market sentiment.
"On the flows front, we have seen FIIs coming back strongly in the past weeks and have now turned positive for the month. Domestic flows continue to remain strong which adds much needed cushion to global volatility," said Narendra Solanki, Head - Fundamental Research, Anand Rathi Shares and Stock Brokers.
However, with ongoing uncertainty on the geopolitical front and upcoming elections, it is anticipated that the market will experience significant volatility. The unpredictability resulting from geopolitical factors and the impending elections is likely to introduce fluctuations and challenges to the stability of the market in the foreseeable future.
"The buoyant sentiments of the market are poised to endure, with the anticipation of scaling fresh all-time highs in the coming month. This optimism is underpinned by vigorous buying activities in the Information Technology and banking sectors, which collectively command a weightage of 51.50 per cent in the Nifty 50 index," Nanda said.