Sensex rises more than 900 points on global signals and maintains Q4 results
Mumbai: On Monday, buying across the board increased the sensex by 941 points to finish at 74,671, with financials leading the way. The good mood on Dalal Street when the markets opened for trade was further enhanced by the absence of news of a worsening of geopolitical tensions in West Asia, an easing of government bond rates in the US, and some stable corporate performance in the local market over the weekend.
Leading indexes gained traction after stable transactions in the early hours and surged to finish close to the day’s highs.
The Sensex completed the day close to its intraday high of 74,721 points, up 1.3%. Nifty closed at 22,643 points on the NSE, up 223 points or 1%. According to market participants, some short covering also aided the advances during the closing hours. Monday’s spike (1,245 points) was the most since March 1.
Sensex rises more than 900 points on global signals and maintains Q4 results
Indian markets recovered, according to Vinod Nair of Geojit Financial Services, helped by positive results from US IT sector leaders and a decline in US 10-year rates. Due in large part to the impressive performance of a few banks during the fourth quarter, which concluded in March, the Bank Nifty index did better domestically. “Stable earnings combined with a reduction in tensions (in West Asia) is expected to sustain positive market sentiment.”
The Bank Nifty reached a fresh all-time high of 49,474 points on Monday. The India VIX, a measure of volatility, increased by 12% during the day’s trading, but dealers said that this did not deter local investors from driving the indexes higher.
According to official figures, Monday’s surge increased investor wealth by almost Rs 3 lakh crore, bringing the BSE’s market capitalization to Rs 413.2 lakh crore. The majority of the day’s profits were derived from speculators and non-institutional investors purchases. Domestic institutions and foreign funds were net purchasers at Rs 692 crore and Rs 169 crore, respectively, according to BSE data.
According to Nair, the US non-farm payroll statistics and the decision made late on Wednesday by the US Fed’s rate-setting committee may determine the direction of the markets moving ahead.
