Indian equity markets saw an extended bull run as the markets rallied for a third consecutive day.
Improved interest rate prospects in the US, decreased crude oil prices, strong domestic macroeconomic data, increased foreign investments, and growing optimism about robust governance at the Centre in 2024, following the BJP hat-trick at the state assembly election results were cited as major factors in the rally.
Expectations of an interest rate cut by the US Federal Reserve in March and a decline of over 600,000 job openings at the end of October, signaled a slowdown in the US economy.
Experts suggest that the Nifty may go up to at 20,700 and 20,500, capping off at 21,000 and 21,200 levels.
Crude oil prices remained flat amid worsening demand outlook in China persisted, and OPEC cut concerns.
The Indian rupee also gained 2 paise against the US dollar, reaching $83.35 in early trade, while the dollar index declined by 0.11% to 103.93.
Indian markets in consolidation phase
Experts predict that while the market sentiment remains bullish, there may be consolidation in the near future, as domestic institutional investors and individual investors book profits.
At 9.40 am on Monday, the BSE Sensex climbed by over 1,000 points to 68,483 in early trade while the the Nifty went up by over 300 points to 20,566, after poll results were declared in four states.
Equity benchmark indices rallied in early trade on Monday to hit a record high, as the Bharatiya Janata Party (BJP) emerged victorious in the state assembly elections held in three out of four states on Sunday.
The BJP retained power in Madhya Pradesh and wrested control of Rajasthan and Chhattisgarh from the Congress.
On the other had, the Congress was able to flip the state of Telangana, where it defeated the K Chandrashekar Rao-led Bharat Rashtra Samithi (BRS).
The positive sentiment built up last week on the back of robust macroeconomic numbers and foreign investment was buoyed by the election results, analysts noted.
Crude oil prices hovering below USD 80 per barrel also boosted investors sentiment, they said.
Among the Sensex firms, Adani Enterprises and Adani Ports led the index with the maximum gains of 6.79% and 4.52% respectively.
Other major companies in green were SBI, ICICI Bank, Bharti Airtel, NTPC and Larsen & Toubro.
On Friday, Nifty ended up at an all-time high of 20,267.90. The same day, as exit polls poured in, the market cap of all companies listed in NSE reached the highest level of 4 trillion dollars.
The market cap of all BSE companies had touched 4 trillion dollars on Wednesday.
Gold prices also surpassed the 2100 USD mark for the first time.
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