Markets gift Rs 1.61 lakh crore ahead of Modi government's second anniversary

MUMBAI: On the eve of the second anniversary of the Narendra Modi government, the stock market was in celebratory mood thanks to Morgan Stanley’s bullish view on Indian equities and a global boost amid encouraging reports on US housing market data. The Indian stock market had its biggest gain since March 1, sparking an increase in investor wealth by Rs 1.61 lakh crore on Wednesday.

“The strong US home sales triggered a rally across the globe and short covering back home led to the strong upmove,” said Motilal Oswal, chairman and managing director, Motilal Oswal Financial Services. “Moreover, the monsoon outlook is healthy and crude prices are also stable with an upward bias— (this) also fuelled the rally.”






A late surge saw the BSE Sensex rise 2.28% to end at 25,881.17 points, its highest since May 17. The NSE Nifty pared losses suffered in the last six sessions in a single day to rise 2.4% to 7,934.90. Both foreign and domestic institutional investors were net buyers on Wednesday.

According to provisional BSE data, FIIs bought equities worth Rs 495 crore and DIIs purchased stock worth Rs 337 crore. Sector wise, all indices rose, with financials, public sector banks and IT being the most sought-after ones. Morgan Stanley upgraded Indian equities to overweight on Wednesday, saying valuations were cheap.