Sensex Soars 800 Points, Nifty Crosses 22,700 on Strong Market Rally; Investors Gain ₹4 Lakh Crore; Asian Markets Strength and Fed Reserve Decision in Focus.
Business: The Indian stock market witnessed a significant surge today, boosting investor sentiment. In early trading, the Sensex jumped over 800 points, while the Nifty crossed the crucial 22,700 mark. This rally was primarily driven by the strengthening of Asian markets fueled by hopes of improvement in the Chinese economy. However, market caution persists due to concerns over potential US tariff hikes, the Federal Reserve's interest rate decision, and geopolitical uncertainties.
Investors Gain ₹4 Lakh Crore
The Sensex gained 800 points, reaching 74,997, while the Nifty surged 233 points to 22,736. This rally increased the market capitalization of BSE-listed companies by ₹4.03 lakh crore, reaching ₹397.20 lakh crore. Major contributors to this surge included prominent stocks like ICICI Bank, Axis Bank, M&M, Zomato, and Tata Motors.
Eyes on Federal Reserve Decision
The US Federal Reserve will announce its interest rate decision on Wednesday. While experts anticipate no change in interest rates, investors are closely monitoring the potential for future rate cuts, economic growth projections, and inflation estimates.
Positive Signals from Global Markets
The Hong Kong stock market registered a 2% surge, its biggest jump in three years. Recently implemented policies aimed at boosting the Chinese economy and measures to encourage consumer spending have boosted investor confidence. This positive sentiment has had a ripple effect on other Asian markets and the Indian stock market.
Indian Rupee Shows Slight Strengthening
The Indian Rupee opened at 86.7625 against the US dollar, marking a 0.04% increase compared to its previous close of 86.80. The US dollar's decline to a five-month low against other major currencies has contributed to the Rupee's slight strengthening.
Crude Oil Prices Remain Stable
Amidst global economic concerns, crude oil prices have remained stable. Uncertainty surrounding US tariff policies and ongoing peace talks related to the Russia-Ukraine conflict could increase instability in the Middle East, potentially impacting oil supply. Brent crude futures rose 0.14% to $71.17 per barrel.
FII and DII Investment Trends
Foreign Institutional Investors (FIIs) continue to sell, having offloaded equities worth ₹4,488 crore so far. Conversely, Domestic Institutional Investors (DIIs) have provided market support, purchasing equities worth ₹6,000 crore.
Disclaimer: Consult a certified financial advisor before making any investment decisions.
