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Home » Blog » Indian Equity Market Witnesses Substantial Gains on Improved Risk Appetite and Positive Macroeconomic Data
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Indian Equity Market Witnesses Substantial Gains on Improved Risk Appetite and Positive Macroeconomic Data

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By Reporter 3 Min Read Published June 14, 2023
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On June 13, the domestic equity market in India experienced significant gains as investors displayed an improved risk appetite. This surge in buying activity across various sectors was driven by positive macroeconomic data released by the government, which indicated a further easing of inflation and an acceleration in economic growth.

The day began with the equity benchmark Sensex opening 54 points higher at 62,779.14. Throughout the trading session, the index saw intraday gains of 453 points, reaching a level of 63,177.47. Ultimately, the Sensex closed with a healthy gain of 418 points, or 0.67 percent, at 63,143.16. Similarly, the Nifty50, another major index, closed at 18,716.15, up 115 points, or 0.62 percent.

As a result of this positive momentum, the overall market capitalization of BSE-listed firms rose from ₹287.9 lakh crore in the previous session to ₹290 lakh crore, leading to investors gaining ₹2.1 lakh crore in a single session.

Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher, provided insights and guidance for the day’s trading session. She noted that the Nifty50 had witnessed a rangebound movement with some volatility for the second consecutive session, eventually closing near the 18,600 zone. Parekh predicted that the index was on track to reach an initial upside target of 18,900 levels. She also highlighted the improved bias of major frontline stocks, suggesting the potential for further gains in the coming days.

Regarding the BankNifty, Parekh observed that it had been underperforming compared to the Nifty index. However, it managed to close above the 44,000 zone and would need to surpass the 44,500 zone to trigger fresh upward movement. She identified the support level for the day at 18,600, with resistance seen at 18,850. Parekh projected a daily range for the BankNifty between 43,800 and 44,500 levels.

In summary, the Indian equity market experienced substantial gains on June 13, with investors displaying an improved risk appetite. Positive macroeconomic data, indicating a further easing of inflation and increased economic growth, contributed to this positive sentiment. The Sensex and Nifty50 both closed with significant gains, making investors richer by ₹2.1 lakh crore in a single session. Vaishali Parekh’s analysis highlighted the potential for further upside in the Nifty50 and the need for the BankNifty to surpass the 44,500 zone for fresh upward movement.

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Reporter June 14, 2023
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