Tuesday marked another day of records for Indian stocks after last week's rally, and the country's benchmark indices' market value was above $5 trillion.

Indian stocks hit fresh all-time highs on Tuesday.

With global cues pointing to more gains for record-high Indian stocks, traders came out all guns blazing after the market holiday on Monday on account of Eid Al Adha.

On Tuesday, the blue-chip Sensex opened at a new record high of 77,235 and rose further to a new all-time intra-day high of 77,367.

The broader Nifty 50 index started at a life high of 23,571 and jumped to a record of 23,574.

Investors will see if the Nifty can extend its gains this week.

Market value and trading volumes will also be in focus this week.

Last week, the country's stock market became a part of the exclusive $5 trillion club of the United States, China, Japan, and Hong Kong.

It took India about six months to add the latest $1 trillion to the market value of companies listed.

The fact that millions of young Indians have flocked to stock investing is a defining characteristic of gains in the last several years.

The entire record rush is fueled by domestic investors, with foreign entities staying on the sidelines.

Record rally

Last week, the Nifty index gained in four out of five sessions and hit new highs every day.

Not far behind, the Sensex had two records in five days.

After a near-$400 billion wipeout on election results day, the recovery of those losses has been brisk, taking just three days.

That is the fastest recovery rate of over 5 per cent loss in the last decade.

Trade volumes jumped to a record last week, and investors are looking at further highs in the coming week.

Reasons for record highs

So, what is driving this rally?

Bets that the new coalition government will focus on policy continuity and consider boosting consumer spending through tax cuts.

While the centre will focus on fiscal discipline, the broader expectations are that the new budget will benefit the Indian middle class.

Tuesday marked another day of records for Indian stocks after last week's rally, and the country's benchmark indices' market value was above $5 trillion. Indian stocks hit fresh all-time highs on Tuesday.

Tuesday marked another day of records for Indian stocks after last week's rally, and the country's benchmark indices' market value was above $5 trillion. Indian stocks hit fresh all-time highs on Tuesday. With global cues pointing to more gains for record-high Indian stocks, traders came out all guns blazing after the market holiday on Monday on account of Eid Al Adha. On Tuesday, the blue-chip Sensex opened at a new record high of 77,235 and rose further to a new all-time intra-day high of 77,367. The broader Nifty 50 index started at a life high of 23,571 and jumped to a record of 23,574. Investors will see if the Nifty can extend its gains this week. Market value and trading volumes will also be in focus this week. Last week, the country's stock market became a part of the exclusive $5 trillion club of the United States, China, Japan, and Hong Kong. It took India about six months to add the latest $1 trillion to the market value of companies listed. The fact that millions of young Indians have flocked to stock investing is a defining characteristic of gains in the last several years. The entire record rush is fueled by domestic investors, with foreign entities staying on the sidelines. Record rally Last week, the Nifty index gained in four out of five sessions and hit new highs every day. Not far behind, the Sensex had two records in five days. After a near-$400 billion wipeout on election results day, the recovery of those losses has been brisk, taking just three days. That is the fastest recovery rate of over 5 per cent loss in the last decade. Trade volumes jumped to a record last week, and investors are looking at further highs in the coming week. Reasons for record highs So, what is driving this rally? Bets that the new coalition government will focus on policy continuity and consider boosting consumer spending through tax cuts. While the centre will focus on fiscal discipline, the broader expectations are that the new budget will benefit the Indian middle class.

Indian stocks start week at new life highs

We look at the strong recovery in Indian stocks. After near-400 billion-dollar wipeout on election results day, Indian shares recovered those losses in just three days. That is the fastest pace of recovery in the last decade.

India's stock rebound fastest in a decade

Indian stocks rose to new highs on Monday as exit polls suggested Prime Minister Narendra Modi will be elected for a third term, potentially with a large mandate. Investors believe that continued public spending will help to preserve economic momentum.

The broader Nifty index rose as much as 3.59 per cent to a record 23,338.70 points, while the BSE index vaulted 3.76 per cent to a career-high of 76,738.89 points. The Nifty 50 index achieved its highest intra-day rise since February 2021. Bond yields also declined, with the benchmark 10-year government bond yield reaching 6.9421 per cent, its lowest level since April 2022, while the rupee rose to 82.9575, its best level since March.

Exit polls predict a strong mandate

Weekend exit polls indicated that Modi's Bharatiya Janata Party (BJP) and allies could boost their 303 seats in the 543-member lower house, potentially securing a two-thirds majority. This conclusion would outperform experts' estimates and likely assist equities markets, which have already reached record highs due to economic expansion.

"The markets are pricing in the continuation of this government's policies and approach to economic management," said Rajesh Bhatia, Chief Investment Officer of ITI Mutual Fund. He expects the government to continue focusing on significant capital expenditures and production-linked incentives to sustain growth.

Economic growth and investor sentiment

India's economic growth rose to 8.2 per cent in the fiscal year ending March 2024, driven by government infrastructure investment and a real estate boom. Analysts believe that a big Modi victory will provide the political capital required for other changes, like land and labour reforms.

Citi analysts said that a verified Modi victory would be viewed as a vote for continuity, which would benefit stocks in infrastructure, logistics, and manufacturing. Companies including Adani Ports, Larsen &amp; Toubro, and Bharat Electronics are expected to benefit.

Investors also expect further efforts to build India as a manufacturing powerhouse, drawing global companies such as Apple and Tesla to diversify their production beyond China.

Foreign investment outlook

Foreign investors, who invested a net $20.7 billion in Indian shares last year but withdrew assets ahead of the election, may return after the vote. Goldman Sachs analysts discovered that clients believe political continuity will contribute to a stable macroeconomic environment and continuous changes.

Exit polls in India have historically been inaccurate, but official election results, which will be published on Tuesday, will validate the verdict. If the BJP wins easily, Swastika Investments Managing Director Sunil Nyati predicts a sustained market surge, particularly in large-cap companies, as foreign investors resume buying Indian equities.

(With inputs from Reuters)

Indian stocks rose to new highs on Monday as exit polls suggested Prime Minister Narendra Modi will be elected for a third term, potentially with a large mandate.

Indian stocks rose to new highs on Monday as exit polls suggested Prime Minister Narendra Modi will be elected for a third term, potentially with a large mandate. Investors believe that continued public spending will help to preserve economic momentum. The broader Nifty index rose as much as 3.59 per cent to a record 23,338.70 points, while the BSE index vaulted 3.76 per cent to a career-high of 76,738.89 points. The Nifty 50 index achieved its highest intra-day rise since February 2021. Bond yields also declined, with the benchmark 10-year government bond yield reaching 6.9421 per cent, its lowest level since April 2022, while the rupee rose to 82.9575, its best level since March. Exit polls predict a strong mandate Weekend exit polls indicated that Modi's Bharatiya Janata Party (BJP) and allies could boost their 303 seats in the 543-member lower house, potentially securing a two-thirds majority. This conclusion would outperform experts' estimates and likely assist equities markets, which have already reached record highs due to economic expansion. "The markets are pricing in the continuation of this government's policies and approach to economic management," said Rajesh Bhatia, Chief Investment Officer of ITI Mutual Fund. He expects the government to continue focusing on significant capital expenditures and production-linked incentives to sustain growth. Economic growth and investor sentiment India's economic growth rose to 8.2 per cent in the fiscal year ending March 2024, driven by government infrastructure investment and a real estate boom. Analysts believe that a big Modi victory will provide the political capital required for other changes, like land and labour reforms. Citi analysts said that a verified Modi victory would be viewed as a vote for continuity, which would benefit stocks in infrastructure, logistics, and manufacturing. Companies including Adani Ports, Larsen & Toubro, and Bharat Electronics are expected to benefit. Investors also expect further efforts to build India as a manufacturing powerhouse, drawing global companies such as Apple and Tesla to diversify their production beyond China. Foreign investment outlook Foreign investors, who invested a net $20.7 billion in Indian shares last year but withdrew assets ahead of the election, may return after the vote. Goldman Sachs analysts discovered that clients believe political continuity will contribute to a stable macroeconomic environment and continuous changes. Exit polls in India have historically been inaccurate, but official election results, which will be published on Tuesday, will validate the verdict. If the BJP wins easily, Swastika Investments Managing Director Sunil Nyati predicts a sustained market surge, particularly in large-cap companies, as foreign investors resume buying Indian equities. (With inputs from Reuters)

Indian shares jump on exit polls predicting Modi's third term

Sensex hit its all-time high of 67,619.17 on July 20 this year and at present, it is 492 points away from this level. Experts expected the Nifty to hit a new high as sentiment was upbeat after the G20 summit.

India's stock market hits record highs

indian-stock

Indian Stock, News on Indian Stock, stories on Indian Stock, articles on Indian Stock, Indian Stock stories at Wion, Indian Stock news, Indian Stock latest news

indian stock

Indian stocks start week at new life highs

India's stock rebound fastest in a decade

Indian shares jump on exit polls predicting Modi's third term

India's stock market hits record highs