A spectacular rally was seen in Indian shares on Wednesday. Dalal Street opened on green mark. During the initial market, the market’s main index Sensex jumped by almost 800 points to reach 74,927.94 points. At the same time, a rise of about 250 points was seen in Nifty also. Amidst the spectacular rally of the market, investors earned more than Rs 6 lakh crore in a few minutes.
After Tuesday, a spectacular rally has been seen in the stock market on Wednesday also. In this boom of the stock market, the wealth of investors increased by Rs 6 lakh crore in a few minutes, because the total market capitalization of companies listed on BSE increased from about Rs 423 lakh crore in the previous session to Rs 429 lakh crore.
These shares gained the most
The biggest gainers on Sensex included Eternal, Bajaj Finance, Mahindra & Mahindra (M&M), UltraTech Cement, Adani Ports and Bajaj Finserv, which rose by 2-3%. IT stocks like Tech Mahindra, HCLTech and Infosys saw a decline, they fell by 3%.
Except Nifty IT, all other sectoral indices on NSE were trading in the green. Nifty Realty rose by about 3.5% and was the leader in gaining, while Nifty Consumer Durables, Nifty Metal, Nifty Auto and Nifty Media followed it. About 2,347 shares rose on NSE, while 217 shares declined and 49 shares remained unchanged.
Why did the market rise?
Signs of an early end to the Middle East conflict
The news of good signs between America and Iran has increased the enthusiasm in the market. US President Donald Trump said that the main issues of the agreement between Washington DC and Tehran have been discussed and he has ordered to stop the attacks on Iran’s energy facilities for 5 days, which has increased the hopes of the agreement.
Crude oil prices fell below $100
The price of Brent crude fell more than 5% and fell below $ 100 per barrel after news of US efforts to end Middle East tensions. The price of the June contract of Brent oil futures fell to $ 93.45 amid easing geopolitical tensions.
India is the world’s third largest oil importer and user, and it purchases about 80-90% of its crude oil needs from outside. Higher crude oil prices lead to increase in India’s import expenditure, increase in current account deficit, pressure on government budget targets, weakening of rupee, increase in inflation and risk of foreign investment going out.
Asian markets boom
A spectacular rally was seen in the Asian stock markets today. Japan’s Nikkei rose nearly 3% on Wednesday morning, while South Korea’s Kospi rose nearly 2%. China’s Taiwan Weighted also jumped by about 3%. However, Wall Street closed yesterday’s session with losses. The tech-heavy Nasdaq declined about 1% and the S&P 500 dropped about 0.4%. European markets had a mixed trend. The UK’s FTSE rose more than 0.7%, while France’s CAC and Germany’s DAX remained almost flat.
Sensex expiry
In the futures and options market of the stock market, the expiry of Sensex takes place every Thursday. But this time the market will remain closed on Thursday 26th March, due to which the expiry happened today i.e. Wednesday itself. Volume increases on the expiry day because big investors want the market to reach a point where they do not have to suffer losses. Due to this, generally there is a rise in the market on the day of expiry. Its effect was visible on Wednesday also.