Sensex, Nifty extend winning streak: Investor wealth swells by Rs 12.3 lakh crore in 4 days

Indian equity markets extended their winning streak for the fourth consecutive session on Friday, buoyed by a series of positive cues including easing geopolitical tensions, falling crude oil prices, a weaker US dollar and renewed foreign investor interest.

The recent rally has been largely attributed to reduced concerns around the Iran-Israel conflict, which previously posed a significant risk to global supply chains. The aBSEnce of major supply disruptions caused the risk premium on oil to vanish, leading to a sharp decline in crude prices. Oil is now on track for its steepest weekly fall since March 2023.

Meanwhile, the sustained weakness in the US dollar and strong foreign institutional investor (FII) buying have also added momentum to the market. The dollar index slipped to around 97, encouraging inflows into emerging markets like India.

As of the last update, the BSE Sensex was trading 241 points or 0.29 per cent higher at 83,997, while the NSE Nifty advanced 82 points or 0.32 per cent to 25,631. Broader markets also participated in the rally, with mid-cap and small-cap indices gaining 0.49 per cent and 0.73 per cent, respectively.

Investor wealth, measured by BSE market capitalisation (m-cap), surged by Rs 2.61 lakh crore today, rising to Rs 460.14 lakh crore from Rs 457.52 lakh crore in the previous session. Over the past four trading sessions, investor wealth has expanded by a massive Rs 12.31 lakh crore.

"Geopolitical risks, including wars and tariff threats, did pose some hurdles, but the bull market has managed to climb all these walls of worry," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

He also pointed out that the large FII buying seen in the previous session, though partly driven by bulk deals, has significantly lifted large-cap stocks, propelling benchmark indices higher. "Despite the strong momentum, there could be some profit booking in the near term," he added. 

Foreign institutional investors (FIIs) bought Rs 12,594.38 crore worth of shares on a net basis during the previous session, while domestic institutional investors (DIIs) sold Rs 195.23 crore worth of equity, according to stock exchange data.

Domestic benchmarks now await further global cues and the July 9 tariff deadline announced by US President Donald Trump, although current sentiment remains largely upbeat.

Nifty outlook: 

"Although the expected surge ended after hitting our target of 25,550 -- the first time since mid-May -- it increases the chances of the uptrend extending towards the 26,200–26,500 range. The downside support for the day is seen near 25,300, while 25,670 could act as a potential resistance or pause level," said Anand James, Chief Market Strategist at Geojit.