The Sensex surges 1,100 points on fantastic Nifty Hit 22,400 on Thursday: Why Is the Market Up?
On Thursday, the final trading day of the week, month, and fiscal year, Indian stock markets saw a significant upswing in trading activity. The Nifty50 reached 22,400 as the Sensex shot up 900 points.
All listed equities on the BSE now have a total market capitalization of Rs 2.74 lakh crore, up from Rs 386.38 lakh crore.
The benchmark indexes gained as much as 29% in the fiscal year 2023–24 and were up 2% for the month as a result of this.
Returning to the day’s trading, experts credit the strong domestic inflows and international investor short-covering for today’s surge. It is estimated that over the previous seven trading sessions, DIIs had net acquired equities worth Rs 24,700 crore.
The following are the main causes of today’s Sensex rally:
Vital Signs From US Markets
Ahead of a significant inflation estimate later this week, Wall Street stocks finished higher overnight. The Nasdaq Composite gained 0.51%, the S&P 500 gained 0.86%, and the Dow Jones Industrial Average increased by 1.22%.
On Thursday, equities in Asia were mixed. Chinese markets recovered from the previous day’s losses. The Shanghai Composite increased 1.2% to 3,029.01, while the Hang Seng index in Hong Kong climbed 1.1% to 16,579.99. S&P/ASX 200 Australia increased 0.9% to $7,887.00. There was minimal change in Taiwan’s Taix. The Nikkei 225 fell 1.2% to 40,283.44 in Tokyo.
Emphasis on Large-Caps
The chief investment strategist of Geojit Financial Services, Dr. V K Vijayakumar, feels that there are significant flows for large-cap companies. Apart from that, the market’s general expectations of a lackluster advance towards the close of the fiscal year were inaccurate, which led to significant short-covering today.
Apart from that, Vijayakumar said that the atmosphere at large-cap counters is somewhat helped by the worries of more regulatory action against SmallCaps in the wake of the MF stress test findings, which revealed that some funds might take up to 30 days to sell 25% of the assets.
HDFC Bank and ICICI Bank have contributed more than 200 points to the BSE Sensex’s advance in today’s session. Together, Infosys, SBI, and Larsen & Toubro have added 200 more points.
Gains in Finance and the Bank
Following the central bank’s relaxation of previously stricter regulations governing lenders’ involvement in alternative investment funds (AIFs), financials improved.
On Wednesday, the Reserve Bank of India (RBI) loosened regulations that were implemented in December and required lenders to put aside larger provisions if they participated in alternative investment funds, which then invested in the debt of the institution.
The house financing unit of Bajaj House Financing has started early conversations with several investment banks regarding a possible initial public offering. This news caused heavyweights Bajaj Finance and Bajaj Finserv to rise around 4% apiece. With increases of 1.6% and 1.9%, respectively, ICICI Bank and State Bank of India were two of the top 10 gainers on the Nifty 50.
Quick Technical
The Nifty 50, a short-term trend indicator, has recovered above its 20-DMA (Daily Moving Average) after ten trading sessions. Additionally, on the daily charts, important momentum oscillators have also shown bullish divergence. Consequently, this indicates that as long as the index maintains above its 20-DMA around 22,180 levels, the short-term bias is expected to continue to be favorable.
