In an unprecedented move, the Nifty index soared to new heights, reaching a historic peak of 21,006.10, marking a substantial 105-point increase in intra-day trading. This monumental achievement comes after a steady climb, with the Nifty closing at 20,901.15 in the previous session on December 7. Let’s delve into the details of this remarkable ascent and the factors contributing to it.
I. Nifty’s Record-Breaking Journey
1.1 The 61-Session Climb
The Nifty’s ascent from the 20,000 mark on September 11 to breaching the 21,000 mark took 61 sessions, underscoring the significance of this milestone.
1.2 21k: Beyond Numbers
21,000 on the Nifty isn’t just a numerical achievement; it’s a historic moment. The benchmark index has set a new peak, marking a significant chapter in its trajectory.
II. The Market Dynamics
2.1 Simultaneous Surge: Sensex’s New High
In tandem with the Nifty’s surge, the Sensex also achieved a new high of 69,888.33 in intraday deals, registering a notable gain of almost 367 points.
2.2 RBI’s Influence
The rise coincided with the Reserve Bank of India’s (RBI) decision to maintain the repo rate at 6.5 percent and revise the FY24 GDP forecast to 7 percent. However, the CPI inflation forecast for FY24 remained steady at 5.4 percent.
2.3 Market Reaction to RBI’s Policy
Moments before the RBI’s policy announcement, the Nifty 50 breached the 21,000-mark, reflecting the market’s immediate response to the central bank’s decisions.
2.4 Short-Term Market Outlook
According to Shrey Jain, Founder and CEO of SAS Online, the market is expected to exhibit a range-bound behavior in the short term, with the Nifty fluctuating between 20,850 and 21,000.
III. December Rally and Driving Factors
3.1 December Record Highs
This marks the fifth session in December when the Nifty has hit a record high, attributing the surge to various factors.
3.2 Influencing Factors
Continued foreign investor inflows, robust macro data, and a decline in crude oil prices, coupled with favorable global market trends, have contributed to lifting the index to its peak.
3.3 Performance Metrics
In December alone, the index has surged over 4 percent, with negative returns in just one session. This follows a 5.5 percent rise in November. Year-to-date in 2023, the index has gained almost 15 percent, showcasing robust performance.
IV. Nifty50’s Remarkable Journey
4.1 From 1,000 to 21,000
A recent report by NSE highlights the Nifty 50’s journey, starting in November 1995 with a base value of 1,000 and reaching 20,000 on September 11, 2023.
4.2 Historical Milestones
The Nifty’s journey has been eventful, with notable milestones. The first 1,000-point rise took nine years, while subsequent gains occurred in shorter time frames, reflecting the evolving dynamics of the market.
