The Sensex rises more than 600 points. Examine the main causes of the stock market’s rise.
At 12:37 pm,the NSE Nifty50 increased 175.35 points to 23,366 while the S&P BSE Sensex surged 604.77 points to trade at 76,952.83. The ongoing rally in the smallcap and midcap classes added to the optimism.
With the major Dalal Street indices appearing ready for a fifth straight session of gains,the stock market is expected to close out the week strongly.
At 12:37 pm,the NSE Nifty50 increased 175.35 points to 23,366 while the S&P BSE Sensex surged 604.77 points to trade at 76,952.83. The ongoing rally in the smallcap and midcap classes added to the optimism.
All of the Nifty sectoral indices were trading in the green,and even IT firms that had fallen in early trading have rebounded.
Today’s stock market surge can be attributed to two main factors. the appealing large-cap stock values and indications that foreign investor selling is slowing down.
The market may be significantly impacted by both reasons, but particularly by the second one. This is due to the fact that since October,foreign selling has reduced the market capitalization by more than Rs 2.4 lakh crore. A huge rally on Dalal Street can be triggered by a reversal.
“The market rally this week,which saw the Nifty rise by 3.5%,has come at a time when trade tensions are escalating and more is expected when the reciprocal tariffs kick in on April 2nd,stated Dr. VK Vijayakumar,Chief Investment Strategist at Geojit Financial Services.
“FIIs’ purchases in the cash market over the course of two days,as well as—possibly more significantly—the dramatic drop in their short positions and rise in their long positions in the futures market,are the primary drivers of the rally.
Retail investors who also want to profit from the current surge have become more confident as a result of this trend. The smart rebound in the mid and smallcap indices,according to Vijayakumar,seems to have given confidence to retail investors who have resumed buying in the broader market.
The market analyst also noted that the bulk of the winners in the current rally are domestic consumption themes,which will not be affected by reciprocal tariffs.
Even if domestic traders and retail investors have had a successful week,there are still some lingering concerns because Donald Trump’s reciprocal tariffs will go into effect on April 2.
Before choosing an investment plan,investors might wait and watch for the announcement of the reciprocal tariff on April 2nd,Vijaykumar continued.
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