Market Breadth Analysis: Analysing Today’s Advance-Decline and Number of Stocks Hitting 52-Week High and 52-Week Low!

Today's market surged with 2,806 advancing stocks, 213 at 52-week highs, and 225 in upper circuits, reflecting investor confidence and bullish momentum on NSE.

Today, with the exit polls indicating a monumental win for Bharatiya Janata Party (BJP) in general elections, the stock market witnessed an unprecedented rally in which major indices hit new all-time highs. In other words, there is widespread optimism in stock trading, as shown by breadth indicators pointing to strong bullish trends across all quarters in the entire economy.

Advances vs. Declines: The number of advancing stocks significantly outpaced the declining ones. Out of 4,115 stocks traded today, 2,346 stocks advanced, while 1,615 stocks declined, and 154 stocks remained unchanged on BSE.

52-Week Highs and Lows: Total of 284 stocks reached their 52-week highs, compared to just 68 stocks hitting their 52-week lows on BSE. This stark contrast indicates that a significant portion of the market is performing at its peak levels, suggesting strong momentum and optimism among investors.

Circuit Breakers: Bullish Momentum in Upper Circuit The number of stocks hitting the upper circuit significantly outnumbered those in the lower circuit. Today, 12 stocks locked in the upper circuit, while only 7 stocks hit the lower circuit on BSE.

Sector Performance: Broad-Based Rally

The market rally was broad-based, with all sectors joining the uptrend. PSU Banks soared by 8.4 per cent, Oil & Gas surged by 6.8 per cent, and Metals climbed by 3.3 per cent, highlighting a strong performance across diverse sectors. This broad participation in the rally indicates a healthy market environment where gains are not confined to a few sectors but are spread across the board.

Macroeconomic Boost: GDP Growth and GST Collections

Positive macroeconomic signals also contributed to the bullish sentiment. India's FY24 GDP growth came in at 8.2 per cent, surpassing all estimates, driven by robust performances in manufacturing, mining, and construction sectors. Additionally, May's GST collections rose by 10 per cent YoY to Rs 1.73 lakh crore, alleviating concerns about consumption growth and further boosting investor confidence.

Market Cap and Currency Strength

The market capitalization of BSE-listed companies reached Rs 4,25,91,511.54 crores (USD 5.13 trillion), marking a significant milestone. Concurrently, the Indian Rupee strengthened by 32 paise against the US Dollar, the biggest single gain in six months, reflecting positive sentiment in the currency market as well.

Volatility Index

The India VIX, a key volatility indicator, plummeted by 15 per cent to end at 20.94, signaling reduced market uncertainty. This decline in VIX is another positive indicator, suggesting that investors are becoming more confident and less anxious about market volatility.

Conclusion

Today's market performance, marked by a significant number of advances, new 52-week highs, and stocks hitting upper circuits, paints a picture of strong bullish sentiment and widespread investor confidence. The rally was supported by favorable exit poll results, robust macroeconomic indicators, and a positive outlook for future growth. As investors continue to show enthusiasm across various sectors, the overall market breadth signals a healthy and optimistic market environment.

Disclaimer: The article is for informational purposes only and not investment advice.