- Sensex and Nifty hit all-time highs, driving significant investor returns.
- ICICI and HDFC Bank investors earned over ₹1 lakh crore in five days.
- US Fed rate cut spurred foreign investments, pushing Indian stocks to new levels.
The Indian stock market experienced an impressive rally last week, with the Sensex closing at 84,544.31 after a historic surge of 1,653.37 points, marking a 1.99% increase.
This boom, driven by gains in the banking sector, benefited shareholders as six out of the top ten companies on the Sensex saw a combined market capitalization rise of ₹1.97 lakh crore.
Indian Stock Market Hits New Peaks: ICICI and HDFC Banks Lead the Charge
The US Federal Reserve’s larger-than-expected interest rate cut played a critical role in attracting foreign institutional investors (FIIs) to Indian markets. FIIs invested ₹14,064.05 crore in one day, marking the eighth-highest single-day FII investment since their entry into Indian stocks. The impact of this global liquidity injection was magnified by the rebalancing of the FTSE All-World Index, further boosting banking shares and propelling the indices to record highs.
ICICI Bank saw a dramatic rise in its market value, which grew by ₹63,359.79 crore, reaching ₹9,44,226.88 crore. Similarly, HDFC Bank’s market capitalization rose by ₹58,569.52 crore, taking its total to ₹13,28,605.29 crore. This surge was driven by strong investor sentiment and foreign institutional investments after favorable global economic developments.
The rally was largely sparked by the US Federal Reserve’s unexpected interest rate cut, which led to a flow of international capital into emerging markets like India. On Friday, foreign institutional investors pumped in ₹14,064.05 crore into Indian stocks, benefiting major banking stocks and boosting overall market performance. The rebalancing of global indices like the FTSE All-World Index also contributed to this positive market momentum.
Despite the banking sector leading the charge, the broader market sentiment remained robust across sectors, helping push Indian stocks to new highs. The substantial investments by FIIs are expected to continue fueling growth, as both domestic and international investors take advantage of the prevailing market conditions. With such strong foreign inflows and positive market trends, India’s stock market appears poised for continued expansion.
The impressive performance of Indian stocks, led by ICICI and HDFC Bank, signals strong investor confidence, especially with continued foreign investments driving market growth.
“Investing in stocks is not just about buying and selling; it’s about confidence in the market’s potential to grow.”
