On the occasion of Diwali, Indian stock markets showed strong growth. On Thursday, both Sensex and Nifty jumped for the second consecutive day and investors’ wealth increased by about Rs 7.22 lakh crore. On Thursday, Sensex closed at 83,467 points with a gain of more than 862 points, while NSE’s Nifty 50 index closed at 25,585 points.
While the Sensex has risen by almost 1,500 points in the last two days, the Nifty has also shown a gain of about 1.9%. This market rise has come due to domestic economic improvement, increasing interest from foreign investors, and expectations in trade talks.
Growth of private banks gave momentum to the market
First of all, private banking sector shares strengthened the market’s rise. Axis Bank’s quarterly results enthused investors as the bank showed better interest margins and improved asset quality. Although there was a slight decline in its profits, its better functioning and strong financial position were considered positive by investors. Along with this, shares of HDFC Bank and ICICI Bank are also performing well, due to which the market remains bullish.
The trend of foreign investors is the reason for the increase in the market.
After selling by foreign investors for consecutive months, there has been a big change in their investments in October. Foreign institutional investors have invested more than Rs 3,000 crore in the Indian stock market in the last few days. This change is a positive sign for the market, because it has reduced the selling pressure in the market and increased the confidence of investors.
India-US trade talks increase confidence among investors
Expectations of progress in the ongoing trade talks between India and America have also strengthened the market. Recent signals from the US administration have increased hopes that trade relations between the two countries will improve. Especially at a time when China has taken strict steps on rare earth magnets, America is showing speed towards increasing cooperation with India.
The market got support from the strengthening of rupee
The Indian rupee strengthened on Thursday and reached its highest level in a month. The strengthening of the rupee was due to the intervention of the Reserve Bank, weakening of the dollar and political reasons. The dollar index fell, giving a boost to the rupee. The strengthening of the rupee made it easier for foreign investors to invest in India and increased confidence in the market.