Indian markets world’s fifth largest, again!

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Almost five months after losing its position to France as the fifth largest stock market in the world by market capitalization, the Indian market regained its position again on Monday. India’s market capitalization is currently $3.31 trillion, according to Bloomberg data. The market capitalization fell to $2.98 trillion at the end of March.

The Nifty index rose 0.54 percent to close at 18,598. The Sensex rose 0.55 percent, or 344 points, to close at 62,846. Both indices are nearing lifetime highs and experts say they could comfortably surpass it during the week.

universal signals

“Volumes have not expanded even as Nifty continues to rise,” said Deepak Jasani, Head of Retail Research, HDFC Securities. Most likely, volumes were affected as other global markets in the US and Europe were closed for the holiday.

Markets were buoyed on the back of gains in global markets after US President Joe Biden and congressional leaders reached a tentative agreement to raise the US debt ceiling over the weekend. The bill is expected to be voted on later this week. Al-Jassani said that 18696 is the next resistance for Nifty, while 18508 could be support.

Support and resistance

“Going forward, we expect the index to break out of the intermediate hurdle of 18,500 and challenge a lifetime high of 18,900 next month. In the meantime, we don’t expect Nifty to breach the key support threshold of 17,800. In the process, we expect the broader markets to accelerate From the bullish momentum fueled by the 18-month consolidation breakout in the Midcap Index,” ICICI Securities said in a report.

Foreign Portfolio Investor (FPI) inflows in May are close to Rs.25,000 crore. FPIs bought shares worth Rs 1,758 crore in the cash portion on Monday and local institutional investors were buyers for Rs 853 crore.

One notable sector that has consistently outperformed the overall market is the banking sector. Bank stocks showed remarkable strength and were the main drivers of the market’s bullish path. In addition, the metals sector also performed well, showing positive momentum.