A strong rise was seen in the stock market on Thursday. Sensex rose 800 points to cross 85,250, while Nifty was also trading above 26,000, making investors happy. The rise was driven by rising expectations over the US-India trade deal, new foreign fund inflows and strong buying in IT stocks.
Sensex-Nifty rise in early trade
BSE Sensex opened 734 points higher at 85,160, while NSE Nifty rose 198 points to 26,066. IT and banking stocks led the market rise. Major stocks like Infosys, HCL Tech, Tech Mahindra, Axis Bank, Kotak Mahindra Bank and Hindustan Unilever were the biggest gainers. Although some stocks like Zomato’s parent company Eternal and Bajaj Finserv saw a decline, the impact was limited.
What is the reason for this rise?
Experts believe that the hope of a trade agreement between America and India soon has breathed new life into the market. According to media reports, the US is planning to reduce the tariff on Indian exports to 15-16%, which could prove to be a game changer for Indian trade and exports. V.K., chief investment strategist at Geojit Financial Services. Vijayakumar said that the market boom which started during Navratri is now gaining momentum with the festive season. The withdrawal of foreign investors and short-covering clearly shows the bull’s dominance in the market.
Support from festive season and corporate income
According to experts, record-breaking auto and consumer goods sales during the Diwali season have further boosted corporate earnings estimates, boosting investor confidence. Prashant Tapse, Senior Vice President (Research), Mehta Limited, said that Dalal Street has made a strong start to Samvat 2082. The market has been rising for five consecutive days after a good trading day, and the news of the trade deal has further strengthened the sentiment.
Foreign investors returned and crude oil prices rose
According to exchange data, foreign institutional investors (FIIs) bought shares worth ₹96.72 crore on Tuesday. Meanwhile, Brent crude oil rose 2.56% to $64.19 per barrel.