Nifty-Sensex created history: Why did the market reach record high? Know 5 reasons

Stock Market Today: Indian stock market created history today on Thursday. Nifty reached a new all-time high of 26,306.95, surpassing its previous record of 26,277.35. The Sensex crossed the 86,000 level for the first time and jumped to 86,026.18. As of 10:15 am, the Sensex was trading 318.71 points or 0.37 per cent higher at 85,928.22, while the Nifty was trading 73.10 points or 0.28 per cent higher at 26,278.40. During this period, 1903 shares rose, 1377 fell and 183 shares remained unchanged. Bajaj Finance, Shriram Finance, Asian Paints, Bajaj Finserv and L&T were among the strongest performing stocks in Nifty-50, rising up to 2 per cent. But the question is, what happened that the market suddenly broke the record? Know 5 big reasons…

FII’s huge buying boosted its strength

The strong interest shown by foreign portfolio investors in the last few days has given stable support to the market. FIIs made strong purchases of about Rs 4,778 crore on Wednesday, the second consecutive positive day after inflows of Rs 785 crore on Tuesday. The return of foreign investors is generally considered a sign that confidence in the Indian economy and companies’ earnings is increasing.

Fed rate cut expectations strengthened further

The possibility of the US Federal Reserve cutting interest rates in December has breathed new life into the market. According to the CME FedWatch tool, the probability of a rate cut has now increased to 85 percent from 30 percent last week. Cutting interest rates increases global liquidity, allowing investment to flow more rapidly into emerging markets such as India. This is why Nifty recorded the best session in the last five months on Wednesday and closed at a 14-month high.

Global markets shine, Asian markets turn green

Indian markets were not rising alone today, but there was an atmosphere of positivity in the entire Asian markets. All major Asian indices, from South Korea’s Kospi to Japan’s Nikkei 225, China’s Shanghai Composite and Hong Kong’s Hang Seng index, were trading in the green. Along with this, American markets also closed strongly on Wednesday, which further increased the confidence of Indian investors. This huge support from global markets was a signal to domestic investors that the global economic environment is currently moving in a better direction.

decline in crude oil

Brent crude prices fell 0.48 percent to $62.83 per barrel, which is a big relief for an oil-importing country like India. Cheap prices of crude oil not only reduce India’s import bill but also keep a check on inflation as the fuel is not expensive. Due to this, RBI also does not need to adopt an aggressive stance in policy rates. In such a situation, the stock market also gets a positive environment, because the costs of the companies are reduced and the market becomes more attractive for investors.

IMF’s India Outlook remains on track for Rs 5 trillion

In the latest IMF report released on November 26, it has been said that India’s target of becoming a 5 trillion dollar economy will now be achieved by FY29, which was earlier estimated to be FY28. Although this time limit has been increased by one year, the prospects for long-term economic growth are still considered very strong. The report also said that even though GDP growth may have slowed down a bit and the rupee has shown a weak trend, the fundamental track of India’s growth is still stable. This confidence strengthens the long-term strategy of investors and creates a positive concept in the equity market.

Disclaimer: The information given in this article is for general information only. Investing in the stock market is subject to market risks. The data, analysis, market trends or any kind of financial information given here should not be taken as investment advice. Before making any investment, definitely consult your financial advisor.