The week started on a positive note. Today a tremendous rise was seen in the stock market. The Sensex closed 639.42 points, or 0.83%, higher at 77,303.63. Nifty closed at 24,092, up 194 points, or 0.81%. Nifty Bank index saw a gain of 175 points. Due to this strong rally, the total portfolio value of stock market investors jumped by about ₹7 lakh crore.
Out of the top 30 shares of BSE, 7 shares declined, while the remaining 23 shares gained. Sun Pharma emerged as the top gainer, closing with a gain of 7%. This was followed by Reliance shares, which gained about 3%. Adani Ports also saw a gain of 2.72%. Shares like Mahindra & Mahindra and HCL Tech also saw significant gains.
First News: On sectoral basis, from pharmaceuticals to consumer durables—all sectors closed in the green. The strongest growth was seen in the pharma sector, which was due to the big news coming from the industry. Sun Pharma announces acquisition of US-based pharmaceutical company Organon; This deal is being described as the biggest acquisition of a foreign pharma company by India so far. The value of this deal is ₹1.10 lakh crore.
Other news: Recently released reports suggest that Iran, using Pakistani mediators, has proposed to the US to reopen the Strait of Hormuz and end the ongoing conflict. According to a Reuters report, US President Donald Trump also said on Sunday that Iran could start talks to resolve the conflict, which has been going on for the last two months.
Third news: Another major reason behind the rise in the stock market was the Free Trade Agreement between India and New Zealand, under which New Zealand announced that it would invest $20 billion. Additionally, the average tax on Indian exports will be reduced from 10% to zero. Also, it was agreed to issue 5,000 visas annually for a period of three years. All these announcements gave a tremendous boost to the market’s momentum.
India VIX declined by 5%
The India VIX—an index that measures market volatility and often referred to as the “fear index”—fell nearly 5% to close at 19. The fall in this index indicates reduction in uncertainty and improvement in investor confidence.
Investors earned ₹7 lakh crore
Due to the tremendous rise in the stock market, investors’ portfolios have seen significant gains. Market capitalization of BSE increased from ₹461 lakh crore to ₹468 lakh crore. In other words, investors made a profit of ₹7 lakh crore today.
