On December 7, the Sensex fell 211.21 points, settling at 69,442.52, while the broader Nifty soared 82.60 points, reaching a fresh summit of 20,937.70. Analysts predict a shift in focus towards large-cap stocks.
In early trade on December 7, Thursday, the stock markets reversed a seven-day gain. The benchmark Sensex fell 211.21 points to 69,442.52. A only 346 points from 70,000, the Sensex showed tenacity and power. The wider Nifty rose 82.60 points, or 0.40 percent, to 20,937.70. Within a day, the Nifty reached 20,961.95.
Analysts attributed market enthusiasm to BJP victory in three states, which boosted sentiment. Stable crude oil prices, expectations of the Reserve Bank of India (RBI) holding interest rates in the Friday meeting, and increased FPI participation in December also contributed.
FPIs invested about Rs 26,759 crore this month, nearly three times the Rs 9,000 crore invested last month. Experts expect FPI participation to moderate as Christmas approaches.
The market surge has benefitted small and midcap firms, but analysts expect it to move to large caps. A confluence of variables supports market optimism, demonstrating the resilience and upward direction of Indian equities markets.
Conclusion
A seven-day surge in Indian stocks ended when momentum changed. The benchmark Sensex dipped 211.21 points to 69,442.52, while the Nifty rose 82.60 points to 20,937.70. The market was boosted by the Bharatiya Janata Party’s recent victory in three states, stable crude oil prices, expectations of the RBI maintaining interest rates, and greater foreign portfolio investor participation. FPI net investments were approximately Rs 26,759 crore this month, three times last month’s. Christmas will likely moderate FPI participation, experts say. Small and midcap stocks have rallied, but experts expect larger-cap stocks to rise.
