Investor wealth soars 6 lakh crore rupees in the last 5 trading sessions; Sensex, Nifty on 7 month highs

With Sensex and Nifty rising more than 3% each so far this month, investors have become richer by Rs 6 lakh crore in just 5 trading sessions. The market capitalization of all companies listed on the BSE at the end of trading on September 30 stood at Rs 155.24 lakh crore and it has risen significantly to Rs 161.07 lakh crore at the opening bell of today. This has added approximately Rs 6 lakh crore to the wealth of investors. In the entire month of September, which was the worst for national equity markets since May, investors’ wealth gained less than Rs 1 lakh crore.

In today’s opening bell, S&P BSE Sensex was up 400 points or nearly 1% to cross the 40,000 mark. This is the first time since February 25 that Sensex has stayed above the 40,000 mark. On the other hand, the 50-share Nifty crossed the crucial resistance levels of 11,800 and moved even beyond the 11,850 mark.

As the benchmark indices have risen, the BSE Smallcap and the BSE Midcap index have managed to gain less than 1% each. The upward movement has been favored by a strong boost in domestic stocks and external flows. “Internally, the flattening of active COVID-19 cases in the past two weeks, expectations of economic stimulus from the Indian government, and positive corporate comments for the September quarter kept sentiments high, ”said Siddhartha. Khemka, Head of Retail Research, Motilal Oswal Financial Services on Wednesday.

Technical analysts believe the equity markets are firmly in control of the bulls and could move close to 12,000 levels in the coming sessions. “Nifty held to the upside after breaking up the initial hurdle at 11550 and is now closed to move above the next major high at 11795. This could be an indication of the strength of the bulls to overcome the hurdles. Therefore, the upper hurdle of 11800 could be removed soon, ”said Nagaraj Shetti, technical research analyst, HDFC Securities. HDFC Securities has a bullish outlook for equity markets with a target of 12,250.

Additionally, the momentum in equity markets could continue with the earnings season now underway. “We expect equity-specific stocks to prevail in the market as we enter the second quarter results season of fiscal 21. In the process, we believe, the broader market would support its relative outperformance,” said ICICI Securities.