It’s an eventful day for India and the victories keep on coming. The victory now has arisen in our stock market.
The NSE’s benchmark index Nifty 50 hit a significant 20,000 mark on September 11. it has risen nearly 1 per cent from the previous close.
The share market has successfully shrugged off global worries and flirtingly curbed the overseas cues as well, outperforming their overseas peers.
The Robust flow from local investors amidst the mixed/negative flows from foreigners has helped nifty achieve this landmark.
Successful achievements recently in space and foreign diplomacy by India have also bolstered sentiment for the Indian stock in an era when the global situation is still shaky, said Dhiraj Relli, MD & CEO, HDFC Securities Ltd.
Amongst the Sensex firms, Axis Bank, Power Grid, Maruti, State Bank of India, Tata Motors, ITC, Nestle and Mahindra and Mahindra were major gainers in the session.
Bajaj Finance and Larsen and Turbo were lagging behind their peers. However, several other factors also contributed to this huge development.
G20 Summit:
” The domestic market was fuelled by the historic consensus that was achieved at New Delhi at the G20 summit and has provided confidence among investors,” said Ankit Kapoor, Head of Research, Commodity Samachar
He further went on to say that India had pulled off a big diplomatic win after the G20 summit adopted a successful declaration which mainly overcame the difference in the Russia – Ukraine war, as PM Narendra Modi called for ending the “global trust deficit”. In addition, the African Union was admitted as G20’s permanent member which is good for future alliances for India.
India’s place in the Global economy:
Several factors leading towards nifty crossing the 20,000 mark can be attributed to India’s position in the global economy;
As per several economists, India is well on track to becoming the 3rd largest economy in the world in the upcoming years and several factors such as the performance of other countries, skilling our workforce and revival in domestic consumption demand played a key role in achieving this. It has the potential to grow by a robust 6.5 – 7% per annum.
According to Ankit Kapoor, Head of Research at Commodity Samachar, “India is poised to become a manufacturing hub in the coming years with its numerous achievements in space research, being a part of the BRICS organisation which is expanding as we speak, and the recent success of the G20 summit.”
With tension brewing between China and Russia with the US, India is the central pillar displaying balance and hence several manufacturing facilities will be placed here.
He further goes on to explain that China will still be a potential leader in the manufacturing process supporting the global economy, but India is not that far behind either.
Economic indicators:
As per analysts from Commodity Samachar, several high-frequency indicators such as the Goods and Service Tax collections, private capital expenditure, credit growth and Purchasing Managers Index for August depicted that the Indian economy remained firm. Furthermore, the economy has resisted high inflation, elevated interest rates, rising crude prices, patchy monsoon and global slowdown among others. The growth opportunities in the country also contribute to the rise of the indexes.
Election Year:
In every election year, the stock market tends to exhibit stability. In 2024, as India prepares for its elections, we can see that happening here. The stability following the election can provide a favourable environment for investors who remain invested after the elections.
Post the elections, the government outlines its agenda and priorities, bringing about policy clarity. This transparency inspires confidence in firms and investors, which boosts investment and stimulates economic growth.
Hence, the year 2024 is going to be a good year for repagin gains in the market.
Final note:
The Asian market, Seoul and Shanghai, ended with gains while Tokyo and Hong Kong settled lower.
Foreign institutional investors (FIIs) have offloaded equities worth INR 224.22 crore recently.
It’s truly a proud moment for India as we’ve reached new horizons!!
Commodity Samachar
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