stock market
Good growth is being seen in the stock market. If we look at the data, Bombay Stock Exchange’s main index Sensex was seen trading with a rise of more than 790 points. On the other hand, Nifty also appeared near 24,200 points. Due to this surge, stock market investors made a profit of Rs 3.90 lakh crore in a few minutes. If experts are to be believed, there was a boom in the IT sector on Tuesday also. But the market did not get much benefit, but despite the rise in crude oil prices and increasing Middle East tension on Wednesday, a good rise is being seen in the stock market. Let us also tell you what kind of data is being seen in Sensex and Nifty…
stock market boom
Tremendous growth was seen in the stock market. Bombay Stock Exchange’s main index Sensex was seen rising by 793.56 points to reach 77,559.48 points. Whereas at 9.35 am the Sensex is trading at 77,496.43 points with a rise of 730 points. However, the Sensex had opened with 77,423.77 points. On the other hand, Nifty was also seen crossing 24 thousand points. According to the data, Nifty was seen trading at 24,203.20 points with a rise of more than 215 points during the trading session. However, at 9.35 am, Nifty was trading at 24,191 points with a rise of 207 points. Whereas Nifty opened at 24,176.65 points.
Rise in IT shares
If we talk about shares, there is a rise in IT stocks. On the Bombay Stock Exchange, IT company Infosys was seen trading with a rise of 3.50 percent. TCS shares are seeing a rise of more than 2.50 percent. An increase of more than 1.50 percent is being seen in the shares of Tech Mahindra and HCL Tech. A rise of more than 3 percent is being seen in the shares of L&T. HUL shares are seeing a rise of 3.11 percent. HDFC Bank shares are seeing a rise of more than 1.50 percent. Shares of Eternal, Bharti Airtel, ITC are also trading with a rise of about 1.50 percent. If we talk about IT sector, a growth of about 3 percent is being seen. Whereas even a day earlier the IT sector had closed with a rise of more than 3 percent.
Stock market boomed due to these reasons
Global AI selloff continues
Good gains were seen in IT stocks like Infosys and HCL Tech on Dalal Street on Wednesday. A major reason for this could be that the impact of the global AI sell-off on India has reduced. South Korea’s Kospi index, in which chip-making companies have a major stake, fell nearly 9 percent today, while Japan’s Nikkei fell more than 4 percent. At the same time, Taiwan’s weighted index also fell by more than 4 percent.
This happened because the number of big listed companies directly linked to the AI infrastructure boom in India is less. This has given India a boost at a time when analysts are raising questions about whether hyperscalers’ huge spending on AI will actually prove beneficial in the future or not, raising concerns of an AI bubble.
rupee strengthened
The rupee rose by 12 paise to 95.70 against the US dollar in early trade on Wednesday. In the last three sessions, the Indian currency has been supported by the possible intervention of the Reserve Bank of India (RBI), and traders are hopeful that the currency will continue to get support from this in future also. Jatin Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said that going forward the rupee will continue to take cues from crude oil prices, US dollar index, FII flows and the upcoming policy decision of the US Federal Reserve. Technically, the rupee is expected to trade in the range of 95.50-96.25 in the near future.
FII purchases
According to preliminary data of NSE, on Tuesday, foreign institutional investors (FIIs) made net purchases in Indian shares and bought shares worth Rs 755 crore. This purchase has happened when FIIs had sold huge quantities of shares on Dalal Street in the last four sessions. Although this buying is very small compared to previous selling and does not reflect their activity today, net buying by FIIs often increases expectations in the market.
Fed expected to keep interest rates as they are
The US Federal Reserve is going to announce the results of its FOMC meeting today. The market largely expects the US Central Bank to make no changes in interest rates, although there remains uncertainty about the outlook due to rising inflation concerns among many Fed policymakers. The Fed’s decision will be an important signal in view of rising inflation concerns amid rising tensions in the Middle East.
huge benefits for investors
Due to this boom in the stock market, investors have benefited a lot. However, the profit of investors is decided by the market cap of BSE. When it increases, investors benefit. If we look at the data, a day before i.e. on Tuesday, when the stock market was closed, the market cap of BSE was at Rs 4,79,16,995.57 crore, which came down to Rs 4,83,07,433.75 crore during the trading session on Wednesday. This means that the market cap of BSE increased by Rs 3.90 lakh crore. This is the benefit of investors.
