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Business News/ Markets / Stock Markets/  Stock market today: Sensex jumps over 1,000 points, Nifty 50 nears 22,500; 5 key reasons why share market is up today
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Stock market today: Sensex jumps over 1,000 points, Nifty 50 nears 22,500; 5 key reasons why share market is up today

Stock market today: All the sectoral indices traded higher with Nifty Metals, Nifty PSU Bank, Nifty Financial Services, Nifty IT and Nifty Auto gaining the most.

Rally in index heavyweights such as Bajaj Finance, Bajaj Finserv, ICICI Bank, among others lifted the Nifty 50 above the 22,300 level. (Image: Pixabay)Premium
Rally in index heavyweights such as Bajaj Finance, Bajaj Finserv, ICICI Bank, among others lifted the Nifty 50 above the 22,300 level. (Image: Pixabay)

The Indian stock market indices witnessed a sharp rally on Thursday, with the benchmark Nifty 50 surging above the 22,400 level, amid cautiously positive global market cues. The market rally was led by across-the-board gains as all the sectoral indices traded in the green.

At 1:15 pm, the BSE Sensex surged 1,045.96 points, or 1.43%, to 74,042.27, while the Nifty 50 was trading 338.30 points, or 1.53%, higher at 22,461.95. The Nifty Midcap 100 and the Nifty Smallcap 100 indices were also trading with half a percent higher each.

All the sectoral indices traded higher with Nifty Metals, Nifty PSU Bank, Nifty Financial Services, Nifty IT and Nifty Auto gaining the most.

Also Read: Buy or sell: Sumeet Bagadia recommends two stocks to buy on Thursday — March 28

Here are 5 key reasons why markets are gaining today:

Rally in global markets

Upward momentum in global peers supported the rally in domestic equity markets. The US stock market indices ended higher on Wednesday, with the S&P 500 setting a closing record.

The Dow Jones Industrial Average rallied 477.75 points, or 1.22%, to 39,760.08, while the S&P 500 jumped 44.91 points, or 0.86%, to 5,248.49. The Nasdaq Composite ended 83.82 points, or 0.51%, higher at 16,399.52.

Heavyweights support

Rally in index heavyweights such as Bajaj Finance, Bajaj Finserv, Grasim Industries, Mahindra & Mahindra and ICICI Bank, among others lifted the Nifty 50 above the 22,300 level. Among Nifty 50 constituents, 48 stocks advanced, while only 2 stocks were trading in the red.

Strong macro

Morgan Stanley raised India’s GDP (gross domestic product) growth forecast for the fiscal year 2024-25 (FY25) to 6.8% from its previous estimate of 6.5%, highlighting the country’s strength and stability as hallmarks of the current financial cycle. It also revised its growth forecast for FY24 to 7.9%. The strong strong GDP forecast lifted the sentiment in the markets. 

Read here: Morgan Stanley lifts India’s GDP growth forecast for FY25 to 6.8%, expects favourable inflation trajectory

FII Buying

Foreign Institutional Investors (FIIs) continued to show their strong buying interest in the Indian stock market, indicating positive sentiment. FIIs net bought shares worth 2,170.32 crore, while Domestic Institutional Investors (DIIs) purchased stocks worth 1,197.61 crore on March 27, provisional data from the NSE showed.

Technical Factors

The Nifty 50 index formed an inverted head and shoulders chart pattern, signaling a bullish reversal. Analysts believe sustaining above the 22,200 level may lead the index to further gains towards 22,400 and 22,500 levels in the coming days. A strong support for the index is placed at the 22,000 level, bolstered by the alignment of the 20, 50, 100, and 200 EMAs (Exponential Moving Average).

“Bank Nifty has been consolidating within the range of 46,500 – 47,000 over the past four trading sessions. A breakout from this range could initiate trending moves in the corresponding direction. An upside breach is anticipated, with expected levels of 47,270 – 47,400 from a short-term perspective. Therefore, one may consider adopting a long position with a stop loss set at 46,500," said Mandar Bhojane, Research Analyst at Choice Broking.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 28 Mar 2024, 11:14 AM IST
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