Bull market on steroids: June's record-breaking lift post LS result day low

2,425 stocks muscle their way to new peaks

The market’s strong rebound from its lows on election result day has led to a record-breaking 2,425 advancing stocks in June, the highest number ever seen in a single calendar month. This occurred against the backdrop of the S&P BSE Sensex and the National Stock Exchange Nifty rallying nearly 7 per cent each last month, with the Nifty Midcap 100 rising by 7.8 per cent and the Nifty Smallcap 100 by 9.7 per cent.

The previous record for the highest number of advancing stocks was 2,407 in April when the benchmark indices posted modest gains of 1 per cent, but the midcap and smallcap indices surged 11 per cent and 6 per cent, respectively. However, the advance/decline ratio for June came in at 1.26, slightly below April’s 1.28, which was the highest in 12 months.

The market’s upswing was driven by encouraging economic data, optimism around the new government’s functioning, and robust domestic and foreign investor flows.

As the April-June quarter earnings season begins, experts anticipate some consolidation and a shift in focus to specific stocks with potential opportunities for further growth.

“The broad-based gains in June will be difficult to replicate. July will be an eventful month for the markets. One expects a rally in the run-up to the Budget, followed by a correction, as the Budget is unlikely to satisfy the misplaced expectations already priced in. A healthy correction is probably desirable. After the correction, more long-term investors could enter the market, including foreign portfolio investors likely to lead the next leg of the rally,” said U R Bhat, co-founder of Alphaniti Fintech.