Bull run on Dalal Steet: Why Sensex surged over 700 points today

Domestic markets witnessed a strong rally on Wednesday,

Around 1:35 pm, the S&P BSE Sensex was up 713.33 points, reaching 65,647.20, while the NSE Nifty 50 gained 224.40 points to 19,667.95.

The broader market indices also displayed significant gains, notably the Nifty Smallcap 100, which saw a rise of 1.41 per cent.

What’s fuelling the bull run on Dalal Street?

The sharp surge observed on Dalal Street today can be attributed to various factors, including a positive momentum in Q2 results, an improvement in global sentiments, and a reduction in inflation both in India and the US.

The decrease in US consumer inflation in October contributed significantly to the overnight boost in Wall Street stocks, influencing a positive outlook in global markets.

influenced by the improved inflation outlook in the US, a critical market for them. The Nifty IT index rose by nearly 2.3 per cent, with all 10 constituents entering the positive zone.

Leading IT firms such as Infosys, TCS, HCL Tech, and Tech Mahindra recorded gains ranging from 1 to 4 per cent.

Simultaneously, realty stocks experienced a substantial surge today, with the index rising by 2.5 per cent. This surge was a result of the decline in domestic inflation in October, where CPI-based inflation reached a four-month low of 4.87 per cent.

Among the 10 constituents of the Nifty Realty index, nine were trading positively, with five recording gains exceeding 3 percent.

The heavyweight Nifty Bank and Nifty Financial Sector indices also registered significant gains of over 1 per cent during the session.

Eicher Motors emerged as the top gainer on the Nifty 50, with a remarkable surge of over 5.3 per cent, while Tech Mahindra witnessed a substantial jump of nearly 4 per cent.

Index heavyweights like Reliance, HDFC Bank, ITC, and others also posted gains exceeding 1 percent, contributing to the substantial upswing in the benchmark indices.

Shrey Jain, Founder and CEO SAS Online, said, “The Indian stock market witnessed a substantial gap-up opening, with a one per cent surge on Wednesday fueled by positive global news.”

“Virtually all sectors maintain positive momentum, with IT and Banking leading the way. The upswing in IT stocks is attributed to the recent easing of inflation concerns in the United States,” Jain noted.

“From a technical standpoint, the 19,700 level remains a significant resistance for Nifty, while support is observed in the range of 19,450-19,400,” he added.

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