The Indian stock market witnessed a remarkable surge on Monday, with the BSE Sensex surging over 1,000 points and the Nifty50 closing above 24,300. The rally was driven by the strong earnings report from Reliance Industries, as well as positive cues from the Asian market and a weakening dollar.
Market Highlights
- Reliance Industries rose 5.3% after reporting a fourth-quarter profit that exceeded estimates, driven by strong performances in its retail and digital businesses.
- Sustained buying by Foreign Institutional Investors (FIIs) contributed to the market resilience, with a total of Rs 32,465 crore accumulated over the last eight days.
- A falling dollar has bolstered investor sentiment in emerging markets like India, encouraging foreign inflows and supporting the rupee.
- Crude oil prices fell below $66 a barrel, easing inflation concerns and providing favorable conditions for India, a major oil importer.
Key Drivers of the Rally
The rally was driven by several key factors, including:
- Reliance Industries’ strong earnings report, which contributed 400 points to the Sensex rally.
- Sustained FII buying, which has amounted to Rs 32,465 crore over the last eight days.
- A weakening dollar, which has lifted appetite for risk assets and supported the rupee.
- Lower crude oil prices, which have eased inflation concerns and provided favorable conditions for India.
Market Capitalization
The total market capitalization of BSE-listed companies rose by Rs 4.45 lakh crore, reaching Rs 426.03 lakh crore, reflecting broad-based gains and optimism in the market.
Sectoral Indices
Most sectoral indices, except Nifty IT, ended in the green, with the Nifty Auto, PSU Bank, Metal, Pharma, Realty, Healthcare, and Oil & Gas indices seeing gains ranging from 1% to 3%.
Global Market
Indian indices surged in line with other global peers, with global equity markets holding at their best levels in over three weeks.
| Global Market | Indian Indices |
|---|---|
| Global Equity Markets | Indian Indices Surged |
| European Shares | Opened Higher |
| US Stock Futures | Mixed |
| Asia | Made Fractional Gains |
Expert Insights
“FIIs have dramatically reversed their selling strategy and turned sustained buyers. This shift is driven by the relative underperformance of US stocks, bonds, and the dollar. In a weakening US economy and depreciating dollar environment, FIIs may continue to buy, providing further support to the market,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
Trending Stocks
SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price are among the top trending stocks.
Disclaimer
Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times.
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Top Trending Stocks
SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price are among the top trending stocks.
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