Sensex Soars 900 Points, Nifty Crosses 22,640; What’s Driving Today’s Market Upswing?
Why is today’s Sensex rising? A decline in the US 10-year yield and positive US tech quarter results helped the local market conclude on a positive note on Monday, with the BSE Sensex increasing by 940 points and the NSE Nifty up more than 220 points. With the exception of Bajaj Finserv, Wipro, ITC, and HCL Tech, all Sensex equities finished in positive territory.
With the exception of a few brief hitches, the BSE benchmark index Sensex rose steadily throughout the trading day on Monday, closing at 74,671.28 after rising 941.12 points, or 1.28 percent. Following suit, the NSE Nifty closed the day at 22,643.40, 223.45 points higher.
ICICI Bank, SBI, IndusInd Bank, UltraTech Cement, and Axis Bank were the top gainers on the Sensex, with gains of up to 4.67%. HCL Tech, which dropped 5.79 percent, was the largest loser, followed by ITC, Wipro, and Bajaj Finserv.
Monday morning’s early session saw the Nifty up more than 93.7 points at 22,513.70, while the BSE benchmark Sensex traded 436 points higher at 74,166.33.
In the meantime, after a five-day surge, selling pressure caused Sensex and Nifty to falter on the prior day, April 26. The 30-share BSE Sensex closed at 73,730.16, down 609.28 points, or 0.82 percent. It dropped to 73,616.65 throughout the day by 722.79 points, or 0.97 percent. The NSE Nifty dropped to 22,419.95, a loss of 150.40 points, or 0.67 percent.
Why is the Sensex up today?
The improvement in US tech quarter results and the decline in the US 10-year rate helped the Indian benchmark indices rise, according to Vinod Nair, head of research at Geojit Financial Services. The Bank Nifty did well domestically thanks to its impressive fourth-quarter results.
He went on to say that consistent profits combined with a reduction in Middle East tensions should keep the market optimistic. The overall market dynamics going forward will be determined by US non-farm payroll statistics and US Fed policies.
Senior technical analyst at LKP Securities Rupak De said, “The index finished with strong gains, and the Nifty kept up its upward trajectory. The indicator remained above the pivotal 21EMA, indicating that the bullish trend is still in place. RSI (14), a momentum indicator, shows a positive crossing. In the near future, it is anticipated to advance toward 22800–22850, with 22550 serving as support.
Rupak De said that the bulls had elevated the Bank Nifty index above its previous swing high, indicating a solidifying bullish trend. Furthermore, the index has progressed beyond the last stage of consolidation.
The RSI (14) indicator is rising and in a bullish crossing. In the near run, optimistic attitude is anticipated to persist overall. Higher gains are expected to reach 49800–50000, with 49000 serving as support,” he continued.
The Rupee in India Today
On Monday, the value of the rupee dropped by 12 paise to 83.47 against the US dollar.
According to Jateen Trivedi, VP Research Analyst for Commodities and Currency at LKP Securities, the rupee fell by 0.12 percent, closing at 83.47. Despite RBI intervention measures, the commencement of election voting has led to the weakening of the currency. The ongoing elections are likely to cause further volatility in the rupee.
Looking forward, he said, the US interest rate decision on Wednesday night and the US non-farm payroll and unemployment statistics on Friday evening are two major events this week. These are probably going to be new catalysts for the rupee and the dollar index.
