There are some factor

1. Index breakouts to the upside created space for traders to close out short positions prior to the June derivative contract’s expiration, which helped the market rise in part.

2. One of the key factors for the recent market rise has been FIIs, who are gaining more confidence in domestic development prospects against the backdrop of a depressed global economy.

Stock market is on new high on day by day basis, this high sending invest0r into a uncontrol buying excitement.

After renewed interest from FPIs helped the benchmark raise by 10% in the last wuater of fiscal year 2024, the benchmark index has sprinted 2226 point in last 6 session.

even as analyst caution there is no room for exurbance as market is now entering overheated zone

Reason behand highthe 

the global support to the bullishness is coming from the USA where  the  market is resilient supported by better than expected .

Q1 GDP growth of 2% and weakly jobless data claim.

said by V. K Vijaykumar

chief investment strategist  .

 

 They have invested more than $3 billion into Indian shares so far in June. They have made a net investment of more than $11 billion in just four months, which is over half of their whole 2020 investment.

 

3.

Reliance Industries and Infosys, two index heavyweights, were among the principal drivers of the Nifty’s climb to a record high. RIL’s shares closed the day 1.3% higher at Rs 2,529.50, while Infosys’ shares rose 1% to Rs 1,293.35.

Among the top gainers in trading on Wednesday were equities in the information technology, metals, and consumer discretionary sectors. A lifetime high was also reached by Nifty Financial Services in addition to Nifty Bank.

Growth in the domestic market have also been aided by favourable developments in international markets. Global mood has been boosted by improving economic indicators in the US and signs that China will likely implement stimulus measures.

Benchmark indices in the US concluded the day on Tuesday with gains, and European stocks are off to a strong start as well.

Since Covid struck three years ago, the Indian stock markets have gone through an evolutionary phase that has seen a substantial influx of new investors. Despite the fact that the investors are still new, the markets and the average retail investor have both significantly matured throughout this time. I’ll give you two examples to emphasise this.

Demat accounts in India have increased by more than thrice in just four years, from 35 million at the end of FY19 to 115 million at the end of FY23. Due to their post-Covid entry, these new investors only witnessed a one-way market rally until the end of December 2021, when the markets had more than doubled from their Covid lows.WSS

 

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