Stock Market Closing, 4th June 2023: With heavy rains across the country, El-Nino, the positive factor of a good monsoon that brought out the threat of drought, economic growth through strong growth in agriculture, rural sector and reduction in inflation, funds continued to storm the record bullishness in stocks. The Indian stock market closed higher for the second consecutive business day of the week. After today’s increase, investor wealth has risen to 298.70 lakh crore.
Indian stock market index Sensex on Tuesday closed up 2740 points at 65479.05 points and Nifty up 66.45 points at 19389. Bank Nifty also rose 143.35 points to close at 45301.45 points. On Monday, the Sensex closed up 486.49 points at 65,205.05 points and the Nifty rose 135.5 points at 19322.55 points.
Today 1582 shares advanced, 1826 shares declined and 118 shares remained unchanged. Bajaj Finance, Bajaj Finserv and Hiromoto Corp were the top gainers while Eicher Motors, Grasim and Bharti Airtel declined. Midcap and small cap stocks saw some pressure.
Sensex climbs 274 points to settle at all-time high of 65,479.05; Nifty hits fresh record of 19,389
— Press Trust of India (@PTI_News) July 4, 2023
Sectoral update
Banking stocks saw buying in today’s trade, with the Bank Nifty closing at a record high. Apart from this, stocks of Pharma, FMCG, Media, Consumer Durables, Healthcare sectors closed higher. While the shares of auto, oil and gas, energy, metal sector saw a decline.
Reasons for the boom in the stock market
- Indian economy is getting stronger and faster, currently the Indian economy is the fifth largest economy in the world, which is the reason for the boom in the market.
- Foreign Institutional Investors (FPIs) have increased their interest in the Indian stock market in recent times. A few months ago foreign investors were constantly withdrawing money, but now they are investing huge amounts. This is one of the major reasons why the stock market is touching highs.
- Monsoon which earlier arrived very late in India. Monsoon time is 1st June but this time monsoon arrived 8 days late but on 2nd July news came that monsoon has now covered the whole country, and the recovery has been fast. Monsoon will reach across the country by July 8, but the uptick in monsoon has buoyed market investors, which has had an impact.
- Another reason is to bring inflation under control and stop the process of interest rate hike. When interest rates rise, there is pressure on the economy, which the stock market does not take very well.
Due to these four reasons Domestic Institutional Investors (DIIs) are also excited and they have also returned to the market due to which the market is booming.
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