4 reasons why Sensex surged 1,016 points today5 min read . Updated: 08 Dec 2021, 04:54 PM IST
- Indian share markets ended on a strong note with the Sensex up by 1,061 points and the Nifty ending up by 293 points.
Indian share markets continued their momentum and ended their day on a strong note today.
The bulls continued to roar on the Dalal Street, as the key benchmark indices logged back-to-back strong gains today helped by a status-quo RBI policy by the Reserve Bank of India.
At the closing bell, the BSE Sensex stood higher by 1,016 points (up 1.8%).
Meanwhile, the NSE Nifty closed higher by 293 points (up 1.7%).
Bajaj Finance and Maruti Suzuki were among the top gainers today.
HDFC Life Insurance and Kotak Mahindra Bank, on the other hand, were among the top losers today.
The SGX Nifty was trading at 17,491, up by 266 points, at the time of writing.
The BSE MidCap index and the BSE SmallCap index ended up by 1.4% and 1.5%, respectively.
On the sectoral front, gains were largely seen in the auto sector, telecom sector and IT sector.
Shares of GSK Pharma and Torrent Power hit their respective 52-week highs today.
Asian stock markets ended on a positive note today.
The Hang Seng and the Shanghai Composite ended up by 0.1% and 1.2%, respectively. The Nikkei ended up by 1.4% in today’s session.
US stock futures are trading on a positive note today with the Dow Futures trading up by 54 points.
The rupee is trading at 75.45 against the US$.
Gold prices for the latest contract on MCX are trading up by 0.3% at ₹48,206 per 10 grams.
Here are 4 Factors Why Indian Share Markets Rallied Today
Omicron less severe: As per the report, the new Covid variant Omicron is unlikely to be more severe than the Delta variant, an overall positive sentiment persisted in the global markets.
Drug makers well prepared: British drugmaker GSK said its antibody-based Covid-19 therapy with US partner Vir Biotechnology is effective against all mutations of the new Omicron coronavirus variant.
Also, a South African study suggested that booster doses of the Covid-19 vaccine produced by Pfizer Inc and partner BioNTech could help to fend off infection from Omicron
Macro data: The Indian equity benchmarks staged a strong up move for second straight session after the Reserve Bank of India (RBI), as widely expected, held interest rates steady at all-time low and maintained its accommodative stance for as long as necessary to support growth.
The RBI held its key lending rate at a record low today, saying growth was a priority as it warned of risks from inflation and the new Omicron variant on the economic recovery.
Sectoral performance: Gains were also seen as IT, auto and telecom sectors witnessed huge buying interest today. The auto sector ended the day up by 2.2% today, while the IT sector and telecom sector ended their day higher by 2%.
We will keep you updated on how these factors develop in the coming days and what effect they have on Indian stock markets. Stay tuned!
In news from the engineering sector, ABB India was among the top buzzing stocks today.
ABB India said it has partnered with Indore Smart City Development (ISCDL) to deploy next-generation digital technology that enables continuous supply of electricity to homes and businesses.
In the first phase of the collaboration, this technology-enabled more than 2,300 connections to achieve 24/7 electricity supply with an efficient automatic response system (ARS) in case of power outages or disruption.
ABB and ISCDL now plan to replicate the same model in other areas of the city and position Indore as the model for smart city projects across India.
Indore, the largest city in Madhya Pradesh and home to over three million people and several key industries in the state, is also part of the central government's mission to develop 100 smart cities across the country.
One of the key parameters of a smart city is 24/7 supply of electricity to enable digital transformation and the supply of key services to citizens.
Indore has set its target to boost the smart city development in sync with its 'swachh' identity in the world.
ABB's Compact Secondary Substations (CSS) used in the project reduces downtime by providing steady and reliable power supply through digitally enabled SCADA (supervisory control and data acquisition) solutions.
Kiran Dutt, President - electrification business, ABB India said,
ABB's digital solutions will enable the regular supply of electricity which is vital for the growth of a vibrant city such as Indore.
ABB is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future.
ABB India share price ended the day up by 1.8% on the BSE.
Moving on to news from the telecom sector…
Airtel & Juniper Networks Sign Deal for Extension Broadband Coverage
Bharti Airtel selects California-based Juniper Networks for network upgrades for the expansion of Airtel’s nationwide broadband coverage across India.
Juniper Networks will supply, install and provide support for upgrades to the MX Series routers and line cards as part of its market-leading broadband network gateway (BNG) to manage their subscribers and services, as well as carrier-grade NAT (CGNAT) solutions to ensure secure encryption across the network respectively, the company said in a statement.
Airtel so far has expanded its Fibre-to-the-Home (FTTH) broadband coverage to over 430 towns.
It further plans to cover three crore households in over 2,000 cities in the country over the next three years.
Sajan Paul, Managing Director & Country Manager, India & SAARC, Juniper Networks, said,
We are privileged to have been Airtel’s partner for the last 15 years, growing alongside them as they have expanded their broadband and ISP network, in service of India’s home, SMB and large enterprise customers. At Juniper, we strive to deliver network experiences that transform how people connect, work and live.
As Airtel gears up their network for 5G, we are excited to continually contribute towards their network transformation, not just in support of their fiber-to-the-home broadband services expansion, but also for other use cases and applications across various business segments.
Airtel share price ended the day up by 2.4% on the BSE.
Speaking of stocks, here is an illustration of the four phases that a stock goes through during its life cycle. The cycle repeats itself after the stock goes through all these stages.
This cycle defines everything in markets. If you can master this cycle, then nothing can stop you from making huge profits.
This article is syndicated from Equitymaster.com
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