The share market is witnessing a boom on the last trading day of the year.
Even though the stock market has not given even double digit returns to the investors throughout the year, on the last day of the year, there is a rapid rise in Sensex and Nifty. During the trading session of about four hours, stock market investors have earned Rs 4.50 lakh crore. If experts are to be believed, the stock market seems to be benefiting from investors’ buying due to rise in steel stocks and fall in crude oil prices, after 5 consecutive trading days of decline. On the other hand, due to the rise in mid and small cap shares on the last day of the year, the overall stock market is also seeing a rise. Let us also tell you what kind of figures are being seen in the stock market and what are the important reasons for the rise in the market.
Sensex and Nifty rise
A bullish atmosphere is being seen in the stock market on Wednesday. After falling in 5 trading sessions, Bombay Stock Exchange’s main index Sensex is trading at 85,312.68 points with a gain of 639.07 points at 1:35 pm. Whereas during the trading session, Sensex rose by 676.68 points and reached the day’s high of 85,351.76 points. However, Sensex had reached life time high on January 1 with 86159.02 points. To break this record, Sensex still needs more than 800 points.
On the other hand, the main index of National Stock Exchange, Nifty, has also appeared positive with a decline of 4 trading days. Nifty appeared at 26,139.55 points with a rise of 200 points at 1:35 pm. Whereas during the trading session, Nifty also reached the day’s high with 26,164.20 points. However, on December 1, Nifty had reached a life time high of 26,325.80 points. To cross this, Nifty still needs more than 180 points.
Main reasons for the rise in stock market
- Rise in metal shares: Shares of major steel makers surged after the government announced imposition of tariffs of up to 12 percent on select metal imports for three years, raising hopes of better price support for domestic producers. Tata Steel rose 2.2 per cent to Rs 179.7, while JSW Steel rose 3.3 per cent to Rs 1,148.1. Jindal Steel rose 3.6 percent to Rs 1,057.8. Jindal Stainless rose 2.8 per cent to Rs 859.7 and NMDC was trading marginally at Rs 83.7, up 0.4 per cent from its previous close.
- Crude oil prices soften: In the international market, there is a decline of 0.10 percent in the price of crude oil from Gulf countries and the price came to US $ 61.27 per barrel. Low prices of crude oil support the Indian market as it reduces inflationary pressure.
- Volatility Reduction: The market volatility index, India VIX, fell more than 3 per cent to 9.37. A low VIX reflects a decrease in investor anxiety and promotes risk appetite in stocks.
- Value Buying: After five consecutive sessions of decline in Sensex and four sessions of decline in Nifty, traders were seen buying shares. Due to this, buying was seen in selected shares at cheap prices. Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the market has the potential to move upwards, but the market remains under pressure due to continuous selling by foreign investors (FIIs) and lack of new sentiments like positive news on the US-India trade front.
- Buying in mid-cap and small-cap stocks: Strong buying was also seen in the broader market, which further strengthened the market sentiment. Both Nifty Mid-Cap and Small-Cap 100 indices have seen a rise of 1 percent.
Investors benefited by Rs 4.50 lakh crore
On the other hand, due to the boom in the stock market, stock market investors have got huge benefits. This benefit has been seen due to the increase in the market cap of BSE. Talking about the figures, the market cap of BSE on Tuesday was Rs 4,71,72,212.97 crore, which has increased to more than Rs 4,76,13,064.20 crore during the trading session. Due to which the market cap of BSE has seen an increase of Rs 4.50 lakh crore. This is also the benefit of investors.