After two days of decline, a tremendous rise is being seen in the stock market on Wednesday. Where Sensex saw an increase of more than 650 points. Whereas Nifty is trading at more than 26000 points. There is a rise in PSU banks and metal stocks. Due to which stock market investors have earned more than Rs 4 lakh crore. Now the biggest question is why is there such a boom in the stock market? The answer is that good news is going to come from America soon. This good news is not about tariff reduction or trade deal. Rather, there are expectations of another cut in interest rates in the Fed meeting to be held in the month of December. The effect of which is being seen in Asian markets also. Let us also tell you what kind of figures are being seen in the stock market. Also, how far have Sensex and Nifty lagged behind their life time high.
Tremendous increase in stock market
After two days of decline, the stock market seems to be trading at a brisk pace. According to the data, the main index of Bombay Stock Exchange, Sensex, is trading at 85,221.55 points with a rise of 634.64 points at 10.15 am. Whereas during the trading session, Sensex is trading at 85,266.30 points with a gain of 679.29 points. However, Sensex is trading about 750 points behind its life time high of 85978.25 points. According to experts, if the market continues to rise like this, the Sensex can break its old record.
On the other hand, the main index of National Stock Exchange, Nifty, is also moving forward with tremendous speed. If we look at the data, it is trading at 26,081 points with a rise of 196.25 points. Whereas during the trading session, Nifty rose by 213.55 points to 26,098.35 points. However, the life time high of Nifty is 26,277.35 points. This means that Nifty is still trading around 180 to 190 points below.
Which stocks are seeing a rise?
Among the 30-share Sensex, Bharti Airtel was the only loser. In which a decline of more than two percent is being seen. The biggest gainers in Sensex included Tata Motors PV, Trent, Tech Mahindra, Tata Steel, Adani Ports, Infosys and Maruti Suzuki, which registered a gain of up to 3 percent. A positive trend was also seen in the broader market, where both the small-cap and mid-cap indices were down by 0.25 and 0.1% respectively. The shares of SBI, the country’s largest government bank, are seeing a rise of about one and a half percent.
Why did the stock market rise?
Asian stock markets registered gains on Wednesday. Before that, an increase was seen in the American stock market. In fact, after the softening of US economic data, expectations of a cut in interest rates by the Federal Reserve in the policy meeting to be held next month were strengthened. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1 percent, while Japan’s Nikkei jumped 1.8 percent. US stock futures also rose 0.2 percent in early trade.
On Tuesday, US markets continued their comeback, with the S&P 500 and Nasdaq Composite posting gains for the third consecutive day. The rally was fueled by lower-than-expected retail sales and a decline in consumer confidence, data that strengthen the possibility of the Fed easing policy rates soon. US stock and bond markets will be closed on Thursday for the Thanksgiving holiday and will be open for short hours on Friday.
purchases by foreign investors
On the other hand, on Tuesday, foreign investors also returned to the stock market. On the institutional front, foreign institutional investors (FIIs) bought shares worth about Rs 785 crore on November 25. While domestic institutional investors (DIIs) were net buyers worth about Rs 4,000 crore. Due to which the stock market is also getting support.
effect of crude oil
Oil prices stabilized after Tuesday’s decline, driven by Ukrainian President Zelensky’s comments on his willingness to pursue a US-backed peace plan. Markets saw the development as a possible step towards easing Western sanctions on Russian energy, which could increase global oil supplies. Brent crude futures rose 0.3 percent to $62.68 after hitting a five-week low, while European energy prices fell to their lowest in 18 months.
rupee vs dollar
In early trade on Wednesday, the Indian rupee opened at 89.25 against the US dollar compared to yesterday’s closing level of 89.22. In the currency market, the dollar rose 0.2 percent against the yen to 156.33, while the dollar index remained steady at 99.833. Spot gold was trading 0.2 percent higher at $ 4,131.78 an ounce.
Investors benefited by Rs 4 lakh crore
Due to the rise in the stock market, investors were seen making huge profits. However, the profit and loss of investors depends on the market cap of BSE. According to the data, the market cap of BSE was seen at Rs 4,69,41,940.65 crore on one day, which came down to Rs 4,73,42,024.02 crore on Wednesday. This means that there has been a gain of Rs 4,00,083.37 crore in the valuation of BSE. This is also the income of stock market investors.