After four days of decline, there is a bullish atmosphere in the stock market on Friday.
After four consecutive days of decline, stock market investors have heaved a sigh of relief. On Friday, the Sensex was seen trading up by about 600 points. Many reasons are being given for this, but the biggest reason has been that inflation in America has been lower than expected. Due to which the expectations of interest rate cut in America have increased once again. Apart from this, the rise in rupee for the third consecutive day has also created a positive atmosphere in the stock market. Besides, investments by foreign investors and prices of crude oil have fallen below $60.
On the other hand, the shares of the country’s largest company Reliance Industries are also seeing a rise. At the same time, growth is also being seen in the pharma sector. There is also a rise in IT and banking stocks. This is the reason why stock market investors have earned Rs 4 lakh crore during the trading session. Let us also tell you what kind of figures are being seen in the stock market. Also, we try to give detailed information about the reasons for the rise in the stock market.
stock market boom
After 4 consecutive days of decline, the stock market is seeing a rise on the last trading day of the week. Bombay Stock Exchange’s main index Sensex is trading at 85,067.5 points with a gain of 585.69 points during the trading session. Whereas a day earlier the Sensex had closed at 84,481.81 points. However, at 11:50 pm, the Sensex is trading at 84,804.41 points with a rise of 323.45 points.
On the other hand, Nifty, the main index of National Stock Exchange, is also seen trading at a good pace. According to the data, Nifty was seen trading at the day’s high of 25,979.25 points with a gain of 163.7 points in the trading session. At 11:50 am, Nifty was trading at 25,926.55 points with a gain of 112 points.
Why did the stock market rise?
- Reduction in US inflation: The Indian stock market started with a rise on Friday after soft US inflation data, which increased expectations of further interest rate cuts by the Federal Reserve next year. The CPI report showed that consumer prices rose less than expected in the year to November. The Labor Department’s Bureau of Labor Statistics did not publish month-by-month CPI figures because it had not collected data for October due to the 43-day government shutdown. According to CME’s FedWatch tool, traders are now predicting a 58 percent chance of the Federal Reserve adopting an accommodative policy in March.
- Boom in foreign markets: The main reason for the rise in Indian stock markets is also the rise in Asian and American markets. There was a surge in Asian stock markets on Friday. Investors made a historic change in Japan’s monetary policy and increased interest rates by 25 basis points. Wall Street’s main indexes closed higher on Thursday. In Japan, the Bank of Japan raised interest rates to the highest level in three decades, marking another significant step away from near-zero lending costs. MSCI’s broadest index of shares in the Asia-Pacific region excluding Japan rose 0.2 percent.
- Buying by foreign investors: Talking about institutional investors, foreign institutional investors made net purchases for the second consecutive session. On December 18, they bought shares worth about Rs 596 crore, while domestic institutional investors bought shares worth about Rs 2,700 crore. Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said that FIIs have stopped selling in the last two days. Although this is positive from the market perspective, it does not show any change in the direction of the market.
- Rupee rises for the third consecutive day: The Indian rupee strengthened by 24 paise to 89.96 against the US dollar in early trade on Friday. Inflow of dollars from companies and softening of crude oil prices contributed to this. On Tuesday, the value of the rupee fell to a record low for the first time. Since then, the rupee has strengthened from around 91 per dollar to the current level. This strengthening started with the heavy intervention of the Reserve Bank of India immediately after the market opened on Wednesday. Meanwhile, the dollar index, which measures the dollar’s strength against six major currencies, was last trading 0.04% higher at 98.46.
- Crude oil fell below $60: At the same time, the prices of crude oil have reduced significantly in the international market. Brent crude, the crude oil of Gulf countries, has fallen below $60 and is trading with a decline. Because of which the stock market seems to be getting support. Due to fall in crude oil prices, there is a possibility of reduction in inflation and fiscal deficit in the country.
Investors got Rs 4 lakh crore
Due to this boom in the stock market, investors have benefited a lot. According to the data, the market cap of BSE was at Rs 4,65,79,876.65 crore a day ago. Which increased to Rs 4,69,77,023.71 crore during the trading session on Friday. This means that the market cap of BSE has seen an increase of Rs 3,97,147.06 crore. This is also the income of stock market investors.