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Business News/ Markets / Stock Markets/  Why Sensex surged over 2500 points in six straight sessions — explained with 5 reasons
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Why Sensex surged over 2500 points in six straight sessions — explained with 5 reasons

Stock market today: Experts listed out these 5 reasons for rise in Sensex today — US Fed rate cut buzz, Indian government using rupee for oil imports, hawkish FII, strong US economic data and political stability

Stock market today: Sensex today touched a new peak of 70,057 during early morning deals. (Photo: Pixabay)Premium
Stock market today: Sensex today touched a new peak of 70,057 during early morning deals. (Photo: Pixabay)

Stock market today: After ushering in December 2023, Indian stock market has been in continuous bull trend and key bechmark indices — Nifty 50, BSE Sensex and Bank Nifty have been continuously scaling new highs. In fact, Nifty 50 and Sensex today climed to a new peak touching 21,000 and 70,000 levels respectively. BSE Sensex has risen from 67,481 to 70,057 levels in last six straight sessions, logging over 2,500 points rally in this time.

According to stock market experts, Sensex today hit a new life-time high of 70,057 as market is expecting rate cut in upcoming US Fed meeting that has turned foreign institutional investors highly bullish on Indian markets. They said that FIIs believe that US Fed rate cut may put US dollar under the sell off heat in near term. 

On stock market news that is fueling Sensex today, experts listed out these five reasons — US Fed rate cut buzz, Indian government using rupee for oil imports, hawkish FII, strong US economic data and political stability.

Top five triggers for stock market today

1] US Fed rate cut buzz: Speaking on the market buzz in regard to upcoming US Fed meeting, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Indian stock market is scaling new highs on US Fed rate cut buzz. After recent US Fed minutes, it is for sure that high interest rate regime has peaked out and now there will be no rate hike in near term. Overall, we can say that market is presuming rate pause with dovish stance in upcoming US Fed meeting."

Also Read: IRCTC share price rebounds after retracing from 52-week high. Buy, sell or wait?

2] Using rupee for oil imports: "Indian government is pressing hard for paying in rupee for its oil imports. It has managed to crack some deals in Middle East countries and it is trying for such deals with some more countries. This is expected to strengthen Indian rupee against major currencies in near term, especially against the US dollar. This is helping Indian economy to contain inflation within its targets and recent RBI MPC meeting outcome is a glaring example of it," said Avinash Gorakshkar.

3] Hawkish FIIs: On why FIIs are pumping money in the Indian stock market, Saurabh Jain, Vice President — Research at SMC Global Securities said, "FIIs are aggressively buying in cash segment of the Indian equity market. In December 2023, by Friday last week, FIIs have bought Indian shares worth 10,875 crore in cash. They are buying aggressively because Indian National Rupee (INR) has gone has gone weak in recent few months. This weakness in rupee is allowing FIIs to get more shares as they pay in dollar terms."

Also Read: What next for investors after Nifty at 21,000 and Sensex at 70,000

4] Strong US economic data: "After better-than-expected US Job data, US dollar is expected to come under pressure. This would ease pressure on the US Fed as well and they might feel a sigh of relief in their bid to keep inflation under control," said Saurabh Jain of SMC Global Securities.

Also Read: ICICI Bank, Kotak Mahindra Bank, IndiGo, Voltas among 12 stocks to buy this week

5] Political stability: "After BJP's victory in three big states in recently concluded assembly polls, market is expecting advantage for the Modi government in upcoming Lok Sabha elections in 2024. They believe that same govenment means continuation of government policies and some buying in based-on this short term political buzz as well," said Avinash Gorakshkar of Profitmart Securities.

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 taking any investment decision.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 11 Dec 2023, 12:31 PM IST
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