stock market
For the second consecutive day, the month of July is witnessing a rise. The special thing is that in these two days the Sensex has seen a jump of about 1000 points. If we talk about Thursday, an increase of more than 500 points was seen in Sensex. Whereas Nifty saw a rise of more than 150 points. Due to this boom, stock market investors earned Rs 2.82 lakh crore in just 27 minutes. If Wednesday’s earnings are also included, investors have recovered more than Rs 5 lakh crore. According to experts, the main reasons for the rise in the stock market are reduction in geopolitical tension, fall in crude oil prices and less selling by foreign investors. Let us also tell you what kind of figures are being seen in the stock market…
Stock market boomed
Market benchmark indices Sensex and Nifty saw a rise in early trading on Thursday. The reason for this was softening of crude oil prices and buying in blue-chip IT stocks after positive developments on the geopolitical front. In early trade, the 30-share BSE Sensex rose 526.61 points to 77,449.25. The 50-share NSE Nifty rose 153.6 points to 24,159.45. Ponmudi R, CEO of online trading and wealth-tech firm ‘Enrich Money’, said that Qatar has said that there has been ‘positive progress’ in the recent round of indirect talks between the US and Iran, due to which there are hopes for a comprehensive diplomatic solution. Infosys, HCL Tech, Tata Consultancy Services, Tech Mahindra, Eternal and InterGlobe Aviation were the major gainers in the Sensex. NTPC, Bajaj Finance, Larsen & Toubro and Bharat Electronics were among the declining stocks. Global oil benchmark Brent crude was trading 1 percent lower at $70.79 per barrel.
Why did the stock market rise?
- There are some positive trends which are supporting and strengthening the market in the near term. First, crude oil prices continue to fall and Brent is now below $71. This will further strengthen India’s macro-economic data and help in achieving higher growth rates while keeping inflation under control.
- Second, auto sales figures remained strong in June. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that this shows that the demand momentum in the economy remains strong.
- He further said that AI trade in South Korea is weakening, as shown by the 11.5 percent decline in Kospi last month. Vijayakumar said that this is a good thing for a non-AI market like India.
- He said that fourthly, FII selling is decreasing, due to which DII (Domestic Institutional Investors) are getting an edge.
- Led by companies like Maruti Suzuki, Tata Motors PV and Mahindra & Mahindra, passenger vehicle sales in the country are expected to grow by nearly 25 per cent to around 4 lakh units in June.
Asian markets fall
In Asian markets, South Korea’s Kospi was trading down more than 4 percent, Japan’s Nikkei 225 index fell more than 1 percent and Shanghai’s SSE composite index was down 0.90 percent. Hong Kong’s Hang Seng index was up more than 1 percent. American markets closed with a decline on Wednesday. According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 1,140.50 crore on Wednesday. On Wednesday, the Sensex closed at 76,922.64, up 443.97 points or 0.58 percent. Nifty closed at 140.10 points or 0.59 percent higher.
