NEW DELHI: The markets soared to a new high on Monday with benchmark Sensex zooming 528 points to regain the 67,000 level and Nifty scaling the record 20,000 mark for the first time.
Robust buying by domestic investors helped equity markets extend their winning run to the seventh straight session on Monday.
The market saw increased investor interest due to significant developments such as the ambitious rail-port economic corridor connecting India, the Middle East, and Europe, as well as the launch of the Global Biofuel Alliance on the G20 summit‘s sidelines.
No one was surprised when Indian Railway Finance Corp witnessed a surge of 10% to its upper circuit within minutes of the market opening on Monday.
The upper circuit represents the highest allowable stock price movement for a company on that specific trading day. In addition to IRFC, Rail Vikas Nigam, RITES, Railtel Corporation of India, and Titagarh Rail Systems also gained on positive cues.
SIP contributions hit record high
In August, contributions through systematic investment plans (SIPs), where investors regularly deposit funds into mutual funds, reached a peak of 158.14 billion rupees. During the same month, a record-breaking 3.59 million new SIP accounts were opened.
MF inflows nearly tripled in August
In August, equity mutual funds experienced a nearly threefold increase in inflows, as investors continued to favor small- and mid-cap funds in anticipation of robust returns. Data from the Association of Mutual Funds in India (AMFI) revealed that inflows into equity mutual funds surged for the 30th consecutive month, reaching 202.45 billion rupees ($2.44 billion) last month, up from 76.26 billion rupees in July.
Strong GDP data
The positive investor sentiment also comes after India recorded a strong GDP growth of 7.8% in the June quarter, the fastest in a year.
According to the figures released by the government earlier this month, India remains the fastest-growing major economy as China’s GDP growth in the April-June quarter was 6.3 per cent.
Following the release of the GDP figures, several top brokerages revised India’s fiscal 2024 economic growth forecast, fuelling investor optimism.
The South Asian nation overtook Britain last year to become the world’s fifth-largest economy, and recently surpassed China to become the most populous country.
(With inputs from agency)