In a special late-evening session celebrating Diwali, the Hindu festival of lights, Indian stocks received a festive boost, with the S&P BSE Sensex rising by 0.6% to reach 65,259.45. This surge was led by significant gains in heavyweight stocks such as HDFC Bank Ltd., Infosys Ltd., and Reliance Industries Ltd, as reported by Bloomberg on Sunday.
The NSE Nifty 50 Index also experienced an uptick of 0.5%, with all 19 sector gauges compiled by BSE Ltd. making positive advances. Coal India Ltd. notably saw its stock surge the most in two weeks after reporting earnings that surpassed expectations.
The optimistic performance extended to small-cap stocks, which have outperformed their global counterparts throughout the year. A gauge measuring their performance recorded a 1.1% increase, closing at a record high.
Positive sentiment was fueled by optimism surrounding India’s economic outlook and corporate earnings. ANZ highlighted India’s superior growth dynamics compared to other regional economies, citing the robust performance of its companies.
In line with the auspicious nature of Diwali, the Sensex has historically shown a trend of ending higher in eight out of the past 10 Diwali-day sessions, also known as Muhurat trading. Over the year since the last Diwali celebration, the Sensex has risen by approximately 9%, outperforming the broader market.
The broader market rally has been propelled by record inflows into companies closely tied to one of the world’s fastest-growing economies. The Diwali session, marked by the new moon, is considered the most opportune time for new investments, symbolizing the initiation of a prosperous financial year. On average, Indian stocks have delivered returns of 17% in the past 10 Hindu calendar years.
While the festival session marked a positive start, attention now turns to the regular trading week ahead, with trading in India set to resume on Monday following the Diwali celebration, and Tuesday being a holiday.
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