Today there was a tremendous rise in the Indian stock market, in which the main Sensex performed well. Investor sentiment improved after the volatility of the last few sessions. During the trading session, Sensex witnessed a massive surge of over 2,400 points to hit a high of 85,871.73, creating a bullish mood in the market.
Tremendous rise in Sensex
Strong buying was seen in BSE Sensex as soon as trading started on Tuesday. The market opened above the previous closing of 81,666.46 and during the day, it gained nearly 4,200 points, reaching a high of 85,871.73. This rise is considered to be much bigger than the recent session. Heavy buying in key stocks of banking, IT and auto sectors strengthened this rally. Investor sentiment once again appeared to be moving towards the equity market.
India-US trade agreement has tremendous positive impact on the market
The trade agreement between India and America is clearly having a positive impact on the stock market. Under this agreement, the US will reduce the tariff to 18 percent. It is expected that this will directly benefit Indian exporters, especially in sectors like auto, IT, textiles, pharmaceuticals and gems and jewellery. This is reflected in the rise in share prices. As a result, Sensex and Nifty gained significantly, and it is expected that this positive trend will continue in the coming sessions as well. Market experts believe that this deal will increase the confidence of foreign investors.
Sectoral support caused the surge
Positive signals from global markets were one of the main reasons for this big jump in the Sensex. The strength of Asian and American markets was clearly visible in the domestic stock market. Besides, expectations of stable interest rates in banking stocks and better demand outlook for IT companies supported the market. Buying was also seen in metal and infrastructure stocks, which provided broad support to the overall Sensex. All the shares were trading in the green, only ITC was in the red.
Nifty 50 is also trading strongly
Along with the Sensex, the National Stock Exchange (NSE) Nifty 50 index was also trading strongly. Nifty 50 crossed the 25,772 mark, an increase of about 684 points. Buying in banking, IT and FMCG stocks supported Nifty. The market trend also remained strong, most of the stocks closed in the green. This shows that the current rally is not limited to a few select stocks.
Investors are cautious and keeping an eye on future moves
Although this rally has been a relief for investors, experts are advising caution in the coming sessions. Global economic data, crude oil prices and activity of foreign investors will decide the direction of the market in the coming days. At present, the strength seen in Sensex and Nifty has increased the confidence of investors, due to which the market environment remains positive.