The Indian stock market this week (June 2 to June 8) had a roller caster ride, marked by full of political surprises and economic developments with the headlines indices hitting fresh record highs twice this week, first on Monday (June 3, 2024) after the exit poll predictions, and the second on Friday (June 7) after the RBI announcement of repo rate and ahead of the Modi 3.0 forming government.
However, amid these highs, the market also experienced a significant event. In the dramatic turn of events, on the final result of the Lok Sabha election 2024, the Indian stock market witnessed a drastic downturn. The stock market took a big hit, the worst since March 2020. On Tuesday (June 4) , it erased all the gains made on Monday. This downturn was primarily attributed to the disparity between exit polls predictions, which suggested that the BJP-led alliance is likely to win a two-thirds majority in the Lok Sabha. But as the official counting of the election came out, the BJP led NDA government lead tally but the seat count narrows.
Market Performance
Stock Market |
Record-High Closings
The BSE Sensex and Nifty both reached new all-time highs on Friday, the last trading session of the week (June 7). The Sensex hit 76,795.31, and the Nifty touched 23,338.70.
On Friday, the Sensex closed at 76,693.36, up by 2,732 points or 3.69 per cent. Meanwhile, the Nifty ended at 23,290, up by 759 points or 3.37 per cent.
Sectoral Indices
BSE Small-cap and Mid-cap indices each surged by 3 per cent.
The Large-cap index also saw a 3 per cent rise.
Information Technology: The Nifty IT index surged by 8.6 per cent.
Fast-Moving Consumer Goods (FMCG): The FMCG index rose by 7 per cent.
Automobile: The Auto index gained 6.8 per cent.
Media and Realty: Both indices added 5 per cent.
However, the Nifty PSU Bank index declined by 1.4 per cent.
Broader Market Gains
In Small-cap and Mid-cap Indices, both indices experienced a 3 per cent rise and large-cap Index also saw a 3 per cent increase.
In Foreign Institutional Investors (FIIs), despite selling equities worth Rs 13,718.42 crore, the market remained buoyant. Domestic Institutional Investors (DIIs), bought equities worth Rs 5,578.71 crore, providing additional support to the market rally.
Image: Wikipedia (Representative)
Currency Market
The Indian rupee appreciated by Rs 0.11, closing at 83.40 against the dollar.
Notable Performers
Small-cap Stocks
Several small-cap stocks saw substantial gains, which includes, Heritage Foods, Moschip Technologies, PTC Industries, Authum Investment & Infrastructure, and V-Mart Retail.
On the other hand, some small-cap stocks faced declines, such as Jaiprakash Associates and Titagarh Rail Systems.
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