Today's Stock Market Update: Sensex Jumps 300 Points, Nifty Reaches 21,991

The stock market witnessed a surge today as the Sensex rose by over 300 points to reach 72,356, with the Nifty touching 21,991. Investor sentiment was bolstered by positive global cues, driving optimism amidst concerns over inflation and bond yields. FIIs remained net sellers while DIIs continued to purchase equities, indicating a complex market sentiment.

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Continuing a positive trend, the Indian stock market witnessed a surge today as the Sensex, India's benchmark index, rose by over 300 points, reaching a significant milestone of 72,356. The broader Nifty index also made substantial gains, touching 21,991. These upward movements came in early trade, fueled by encouraging global cues that uplifted investor sentiments across the board.

Investors found reassurance in the positive trading patterns observed in the Asia-Pacific region, which were largely influenced by overnight gains on Wall Street. This optimism followed a report indicating that US retail sales data had declined more than expected in January. The unexpected decline in retail sales offered relief to investors who were previously concerned about higher-than-expected inflation figures, contributing to the buoyant mood in the Indian market.

In early trading, a significant number of stocks contributed to the positive momentum. Notably, 22 constituents of the Sensex were trading in the green, with prominent companies like Mahindra & Mahindra and Tata Motors registering jumps of more than 2 percent. Similarly, in the Nifty pack, 40 scrips experienced gains, reflecting a broad-based optimism prevailing in the market.

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Thursday marked the third consecutive session of gains for the Indian indices. The Sensex closed at 72,050.38 points, marking an increase of 227.55 points from the previous day, while the Nifty ended at 21,910.75 points, reflecting a rise of 70.70 points. Despite these gains, the activity of Foreign Institutional Investors (FIIs) remained noteworthy. On Thursday, FIIs were net sellers, divesting shares worth Rs 3,064.15 crore. Conversely, Domestic Institutional Investors (DIIs) continued their trend of purchasing equities, buying shares worth Rs 5,173 crore.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, offered insights into the market dynamics, suggesting that the trend of FII selling might persist due to the high 10-year US bond yield, which stood at 4.24 percent. However, Vijayakumar anticipated continued DII buying, driven by robust flows into DIIs. This intricate balance of FII and DII activity added layers of complexity to the market sentiment, influencing investor decisions and market movements.