Investors wealth rise nearly ₹5.74 lakh cr as markets rally after 4-days selloff

As per BSE data, the listed firms’ market cap rose by ₹5.74 lakh crore to more than ₹277.86 lakh crore on December 26th. Last week, on Friday, the market cap was around ₹272.12 lakh crore.

Last week, investors nearly ₹8.43 lakh crore of wealth was wiped out in a single day on December 23rd. Between December 19th to 23rd, around Rs, 15.78 lakh crore of wealth was eroded.

However, on Monday, Indian markets gained momentum leading to broad-based buying. Midcap and smallcap stocks witnessed strong buying as they outperformed benchmarks. PSU banks led the rally across sectoral indices. Overall, in the trading session, Sensex climbed by nearly 1.7% and Nifty 50 over 1.5% on Monday with an intraday high of 60,833.78 and 18,084.10 before correcting.

Sensex closed at 60,566.42 up by 721.13 points or 1.2%, while Nifty 50 surged by 207.80 points or 1.17% to end at 18,014.60. Bank Nifty rallied by 962.10 points or 2.31% to settle at 42,630.15. Except for pharma and healthcare stocks, all other sectoral indices recorded sharp upside. On NSE, the PSU Banks index skyrocketed by a whopping 7.3%. On BSE, Bankex zoomed over 968 points followed by Capital Goods jumping over 601 points.

Further, in the broader markets, smallcap indices on both NSE and BSE surged between 3-4%, while midcap indices jumped between 2-3%.

Vinod Nair, Head of Research at Geojit Financial said, “After a four-day selloff, the domestic market was refuelled by bottom fishing and optimistic sentiment from global counterparts. PSBs led the rally, while mid-and small-cap stocks outpaced the benchmark. Contrary to the trend, global concerns over the recession and COVID spread continue to remain high, which will sustain volatility in the market.”

Meanwhile, the FIIs selloff slowed down on Monday, however, an outflow of ₹497.65 crore was recorded in Indian stocks. On the other hand, domestic institutional investors bought equity shares worth ₹1,285.74 crore.

Also, Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas said, “The Nifty had seen a sharp decline in the last week that had pushed the intraday momentum indicators into the oversold zone. In terms of the Fibonacci retracement, the index had reached 50% retracement of the rally from Sept 2022 to Dec 2022. Consequently, the index had a swift bounce on December 26. It has moved up to retest a trendline, which was broken on the downside on Friday. Thus 18100-18200 will be the near-term hurdle zone, which will decide the further course of action for the index. Overall structure shows that the Nifty is likely to witness short-term consolidation with key support at 17800.”

Ajit Mishra, VP – Technical Research, at Religare Broking suggested that participants shouldn’t read much into a single-day rebound and wait for the sustainability of the move. He added, in absence of any major event, the upcoming expiry of December month derivatives contracts will keep the traders busy.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.