 "The addition to MSCI's indices has sent Riyadh stocks into a bull market and brought record fund inflows")
In the past three trading sessions, bulls drove the S&P BSE Sensex 1,033 points or 1.64 per cent higher to notch fresh lifetime highs of 64,012 levels. The NSE Nifty, meanwhile, hit a record high of 19,003 levels, up 338 points or 1.8 per cent in three days.
Broader markets, too, displayed strength as Nifty Midcap 100, and Nifty Smallcap 100 indices surged up to 1.1 per cent during this period.
Sector-wise, the BSE Consumer Durables, Metal, Bank, and Auto indices gained in the range of 1.8-2.3 per cent in three days.
That said, analysts believe that the record high levels are sustainable in the long-run.
"Whenever an economy has jumped to $5 trillion from $3 trillion, the stock markets have usually delivered good returns. However, domestic markets have not delivered optimum returns despite a $3.75 trillion economy. In the past, Nifty50 stood around 9,000 levels when the economy was at $2 trillion. The current 19,000 levels from Nifty50 in a $3.75 trillion economy does not suffice. Hence, we have a long way to go and the levels are likely to sustain," said AK Prabhakar, head of research, IDBI Capital.
That said, analysts believe that the record high levels are sustainable in the long-run.
"Whenever an economy has jumped to $5 trillion from $3 trillion, the stock markets have usually delivered good returns. However, domestic markets have not delivered optimum returns despite a $3.75 trillion economy. In the past, Nifty50 stood around 9,000 levels when the economy was at $2 trillion. The current 19,000 levels from Nifty50 in a $3.75 trillion economy does not suffice. Hence, we have a long way to go and the levels are likely to sustain," said AK Prabhakar, head of research, IDBI Capital.
Meanwhile, here are the top factors behind markets bull run in three days:
FII inflows: Flows from foreign institutional investors have remained buoyant so far in June. On a month-to-date (MTD) basis, FIIs have bought Rs 30,514 crore of domestic equities, whereas they have poured nearly Rs 60,000 crore so far this calendar year (CY23).
F&O expiry: According to a Nuvama report, Nifty futures rollover stood at 56 per cent, higher than the 3-month average of 55 per cent, which indicated a strong sentiment prevailing in markets. Moreover, the current upsurge across indices helped traders cover short positions ahead of the June derivatives expiry.
Market-wide rollovers, on the other hand, stood at 72 per cent versus 3-month average of 75 per cent, observed analysts.
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