During Tuesday's trading session, Reliance Industries Ltd (RIL) became the first Indian firm to surpass Rs 20 lakh in market capitalisation.
The benchmark Sensex rose 0.68 percent, or 483 points, to 71,555.19, while the NSE Nifty advanced 127 points to 21,743.25. RIL stock rose to a 52-week high of Rs 2,958, before ending at Rs 2,928.95. RIL's market value at the close was Rs 19.81 lakh crore. Market capitalisation refers to the total market value of a company's listed shares. The Nifty recovered from Monday's losses after India's Consumer Price Index (CPI) inflation hit a three-month low of 5.10 percent. Except for metals, all sectors ended in positive territory, with banking and financial services leading the way. Shares of public sector undertakings (PSUs) recovered after profit booking over the previous few days.
“Notable support from heavyweight RIL fueled the rise and propelled the index,” Om Mehra, Technical Analyst at SAMCO Securities, stated that the surge was further reinforced by favorable global market trade.
On Tuesday, the MSCI Global Standard Index underwent a quarterly rejig, which might result in inflows of over $1 billion from passive foreign institutional investors (FIIs). “Many equities, such as NMDC, GMR Airports, Union Bank, BHEL, and Punjab National Bank, were in focus following the MSCI review,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal.
According to Prashanth Tapse, Senior Vice-President (Research), Mehta Equities Ltd, markets ended in positive territory, owing primarily to a recovery in banking stocks, which had been battered in recent sessions due to mixed earnings in the financial sector and central banks deferring rate cuts.
“Volatility is likely to endure as most of the impediments like as geopolitical concerns, stretched valuations of domestic stocks, and FII selling will continue to deter investors,” he said.
