A spectacular rally was seen in the stock market amidst stability due to global tension. Market's main indices Sensex and Nifty traded higher. Nifty 50 crossed the figure of 26,000 after about 14 months, while Sensex also came close to the all-time high. Around 1 pm, the Sensex was trading at 85,745.46 points with a rise of 558 points. On the other hand, Nifty 50 reached its high level with a rise of 170 points at 26,223. Was trading at 25. However, a slight decline was seen at the time of market closing.
Why did the market rise?
- FII buying- Foreign institutional investors (FIIs) became buyers on Wednesday and bought equities worth Rs 1,580.72 crore. This inflow has further increased the positive sentiment in the domestic market, the effect of which is visible on the market.
- Positive global signs- Asian markets were trading with gains, with South Korea's Kospi and Japan's Nikkei 225 both up more than 3 percent. Shanghai's SSE Composite and Hong Kong's Hang Seng also advanced. US stocks closed with gains overnight. Ponmudi R, CEO of Enrich Money, told Moneycontrol that global markets are providing a stable and supportive background for India, with no new negative triggers seen overnight. US equities closed with gains led by a sharp rise in technology stocks after Nvidia's strong earnings guidance.
- Buying in Index Heavyweight- Shares of index heavyweight Reliance Industries rose 1.5 per cent to Rs 1,540.90, providing further support to the benchmark. UBS reiterated its Buy rating on the company and cited expectations of improvement in its oil-to-chemicals business. Motilal Oswal also maintained buy call and raised its price target citing progress in the group's new energy segment.
