Investors Get Richer By Rs 5.5 Lakh Crore In Just Two Days As Indian Stock Market Goes Up

India's stock market investors have breathed a sigh of relief just ahead of the festival of colors, with the Sensex and Nifty both showing strength this month.

Sensex & Nifty Jump

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After more than a month of rollercoaster rides amid the Adani Group's stock bloodbath, the Sensex has rallied over 1,300 points in the last two days, whereas the Nifty50 has gone up nearly 400 points.

The two-day rally, which comes after crisis-ridden Adani stocks got a Rs 15,000 crore booster shot from NRI investor Rajiv Jain, has made equity investors richer by Rs 5.5 lakh crore, as the total market capitalisation of all BSE-listed stocks rose to Rs 265.5 lakh crore yesterday. India's stock market is closed today due to Holi.

Investors Optimistic About Coming Months

In the meantime, as per the ET report, a consumer survey by Axis My India shows that 43% of people Sensex will go beyond 70,000 in the next 3 months. "Whereas 25% investors believe it will remain between 55,000 to 65,000. However, 18% investors surveyed believe that Sensex will drop below 50,000."

Key Reasons By Stock Market Rally

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1. Adani stock rally

Adani stocks continued to rally for the fifth day today as investors shifted focus away from the Hindenburg report following the signing of a Rs 15,446 crore deal with GQG Partners, which picked stakes in four companies.

The investment is seen as an affirmation of the growth potential of the apples-to-airport conglomerate. During the day, 8 out of 10 Adani stocks ended on a higher note, with Adani Enterprises ending 6% up, as per the report.

Also, following NRI investor Rajiv Jain's GQG investment in Adani stocks, and news around the loan prepayments by the Adani Group, bank stocks have also been gaining momentum.

2. Upward momentum in global markets

Major stock market indexes in the US, such as the Dow Jones, as well as the S&P 500, have been up over 1.5% since last week; Japan's Nikkei and Hong Kong's Hang Seng index each gained over 3.5% in the past one week, Hong Kong's Hang Seng index has been up %; and Australia's ASX 200 index has been up over 1.5% in the past one week.

3. FII investments

Although FIIs have been net sellers in the calendar year 2023, foreign investors were net buyers to the tune of Rs 246.24 crore on Friday, as per the report. Domestic investors, on the other hand, bought Indian stocks worth over Rs 2,000 crore.

Also Read: Explained: Sensex, Nifty & Their Role In India's Stock Market

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