On Monday, rapid recovery was seen in the benchmark equity indices Sensex and Nifty. Iran and America have got a plan whose aim is to end the enmity by immediately imposing ceasefire. After this news, both the indexes went up, recovering from the initial loss. At around 1:35 pm, the Sensex was trading 666.31 points higher at 73,985.86, while the broader Nifty was up 155.70 points, or 0.69 per cent, at 22,868.80. The market trend turned positive, with 2,846 shares rising, 1,094 falling and 161 unchanged.
Most of the sectoral indices of Nifty were trading in the green. Broader index also saw gains, with both Nifty Smallcap100 and Nifty Midcap100 rising by more than 1 percent. Domestic markets were trading down in early trade; The Sensex fell 590.89 points, or 0.8 percent, to 72,728.66, and the Nifty fell 170.15 points, or 0.74 percent, to 22,542.95. The special thing is that the stock market took a huge jump of 1250 points from the day’s lower level. Due to which the stock market earned Rs 7 lakh crore in 85 minutes. Let us also tell you what were the main reasons for the rise in the stock.
Main reasons for rapid recovery in the market
- Expectations of America-Iran ceasefire: Iran and America have received a proposal to end hostilities, which can come into effect from Monday and reopen the Strait of Hormuz. A Reuters report quoted a source as saying that Pakistan has prepared a framework and shared it with both the countries, which calls for an immediate ceasefire and a comprehensive agreement thereafter.
- Strength in Rupee: The rupee strengthened by 33 paise to reach 92.85 against the US dollar. In the interbank foreign exchange market, the rupee opened at 93.13 and strengthened to 92.85 during the session. Because of this also the stock market seems to be getting a lot of relief.
- Strong buying in banking shares: Strong buying was seen in bank shares. Investors found the valuations of these shares attractive after the recent fall due to foreign fund outflows. A rise of up to 2 percent was seen in Nifty Bank and Nifty PSU Bank indices. Quarterly business updates showed that loan growth has improved. Shares of Bank of Maharashtra, Bank of India and Bank of Baroda rose by 4.2 per cent, 4.1 per cent and 3.5 per cent respectively. Jefferies said in a note that loan growth for private banks remained flat, while it improved slightly for some public sector banks; The reason for this was high demand for working capital.
- Buying in IT Shares: IT shares also saw a rise of up to 1 percent, as the March quarter is expected to be better than expected. The special thing is that TCS shares have seen the highest rise. Before that there had been a huge decline in IT shares. Due to which the valuation of heavy IT shares has also decreased significantly. Investors are now taking advantage of this.
Investors earned around Rs 7 lakh crore
On the other hand, due to this boom, stock market investors have got huge profits or should we say recovery. If we look at the data, during the day when Sensex was at its lower level, the market cap of BSE had come to Rs 4,19,83,982.59 crore. After which the rise started and the market cap of BSE crossed Rs 4.26 lakh crore after 82 minutes. This means that investors have made a profit of Rs 7 lakh crore in a few minutes.