New Delhi, 03 November (H.S.): The Indian equity market extended its winning streak for the fourth consecutive session on Tuesday, opening on a strong note amid broadly positive investor sentiment. Despite the continued pressure from crude oil prices remaining above the $100-per-barrel mark, both benchmark indices, the BSE Sensex and the NSE Nifty, registered sharp gains in early trade.
The Sensex surged more than 700 points during the opening phase, while the Nifty crossed the crucial 23,600 mark. The buying momentum was also reflected across the broader market, which maintained a positive trajectory during the first half of the morning session. Mid-cap stocks, in particular, witnessed strong investor interest.
The sharp rally translated into a substantial increase in market wealth, with the combined market capitalisation of companies listed on the Bombay Stock Exchange (BSE) rising by nearly Rs. 2 lakh crore within the first hour of trading. The surge significantly boosted investors’ overall wealth.
Market experts attribute the strong performance to three major factors. According to Prashant Dhami, Vice-President of Dhami Securities, the biggest support for the market is coming from stocks in the fast-moving consumer goods (FMCG) sector. Strong gains in leading companies such as Marico and Godfrey Phillips have helped push the FMCG index up by more than one per cent.
Another factor supporting domestic equities is the growing investor interest in Indian information technology (IT) companies. Following a sell-off in semiconductor stocks in global markets, investors have increasingly turned their attention towards domestic IT stocks, providing additional support to the sector.
Dhami identified sustained buying by foreign institutional investors (FIIs) as the third and most significant factor behind the market's upward momentum. Foreign investors have continued to make substantial purchases in Indian equities, strengthening market sentiment.
Investor confidence has also received a boost from reports that the Securities and Exchange Board of India (SEBI) has proposed that the government remove the long-term capital gains (LTCG) tax on foreign investors. The proposal is part of the market regulator's pre-Budget recommendations and is aimed at making Indian equities more attractive to overseas investors. The recommendations are non-binding, and the final decision rests with the government.
Supported by these favourable domestic and global developments, the market remained firmly in positive territory during early trading, even as investors navigated the weekly expiry session for Nifty derivatives.
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Hindusthan Samachar / Jun Sarkar
