The Indian stock market is set to enter Samvat 2083 on a bullish note, with the Nifty 50 heading into the special Muhurat Trading session after extending its winning streak to seven consecutive sessions,
During last week, the Nifty 50 surged 8.58%, marking its strongest weekly performance since February 2021, and the rally supported the index, reducing its year-to-date losses to 4.21%. At its lowest point this year, the index had fallen nearly 15% but has since recovered close to 13% from its yearly low.
The market recovery has largely been supported by the return of overseas investors, who aggressively bought domestic equities, pouring in a massive ₹45,970 crore in November so far. This marked a strong turnaround after foreign investors remained net sellers for two consecutive months.
The shift in sentiment towards Asia's third-largest economy comes amid a correction in global AI-linked stocks, as concerns over a potential move by the US Congress, led by Democrats, to impose restrictions on the massive expansion of data centres in the US triggered a sell-off in previously favoured chip and memory stocks across Asia.
Investors have long been concerned about the elevated valuations of AI-linked stocks, while the massive capital expenditure spree has raised questions about the sustainability of returns on these investments.