India’s benchmark stock indexes, NSE Nifty 50 and S&P BSE Sensex, reached new heights on June 26, 2024. The NSE Nifty 50 rose by 0.74% to 24,044.5 points, while the S&P BSE Sensex increased by 0.72% to over 79,000 points, setting record highs for three consecutive sessions. June has been a favorable month for the markets, with the Nifty 50 and Sensex both experiencing their best monthly performances since December 2023, up 6.72% and 7.14% respectively. The bullish trend is attributed to Prime Minister Narendra Modi’s re-election, providing political stability and easing investor concerns. Foreign portfolio investors have also shown optimism by pouring in 172.93 billion rupees ($2.07 billion), the highest in three months.
For markets, the stability in India signals a path for growth. The private banking sector has particularly thrived in June, with ICICI Bank witnessing a remarkable 10.3% rise in just eight days, surpassing $100 billion in market capitalization. Other heavyweights like Reliance Industries and Ultratech Cement have also played a significant role in propelling the market forward. The overall investment landscape in India appears promising, with the influx of foreign investments reflecting a recognition of the country’s economic potential. Modi’s re-election has instilled a sense of continuity and assurance among global investors, leading to increased confidence in India’s long-term prospects. Not only are private banks and industry giants experiencing growth, but the IT sector has also seen a notable rise, with the Nifty IT index climbing 2.03%. As more investors turn their attention towards India, the country’s market dynamics are poised for sustained positive momentum.