Finance1 min read

Why is market rallying today? Sensex soars over 950 pts, Nifty tops 23,300. 7 factors driving Rs 4 lakh crore D-Street gains

By · Published by Everything Blog

In short

Domestic equities advanced sharply as advancing stocks outnumbered decliners by 2,053 to 921 on the National Stock Exchange. Major corporate results set the pace, led by Reliance Industries surging over 5% after reporting a 41% profit rise, while energy and metal stocks followed closely. Falling global crude oil prices and sustained foreign institutional buying of roughly $1.2 billion over ten sessions provided strong macroeconomic tailwinds. Meanwhile, market sentiment gained an additional lift from expectations of potential government relief on long-term capital gains taxes.

Key points

  • Strong corporate earnings from heavyweights like Reliance Industries and Tata Steel serve…: Strong corporate earnings from heavyweights like Reliance Industries and Tata Steel served as primary domestic catalysts for the market surge.
  • Foreign institutional investors reinforced market strength by purchasing approximately $1…: Foreign institutional investors reinforced market strength by purchasing approximately $1.2 billion in Indian equities over the past ten sessions.
  • Sentiment improved on easing global energy costs and domestic investor hopes for long-ter…: Sentiment improved on easing global energy costs and domestic investor hopes for long-term capital gains tax relief.

Sources checked by our analysis pipeline: 1

Listen to this article in summarized format

Sensex soared 1,000 points while Nifty 50 rose above 23,300 on Monday morning. The sharp gains added nearly Rs 4 lakh crore to the total market capitalisation of all companies listed on BSE in less than five minutes from opening, pulling it up to Rs 478 lakh crore.

Reliance Industries shares surged more than 5% to lead gains on Sensex, while Tata Steel shares jumped 4%. NTPC, Maruti Suzuki, BEL, Power Grid, SBI, Asian Paints, TCS, M&M, UltraTech Cement, HUL, L&T, Bharti Airtel and Adani Ports shares gained 1-3% to follow. Bucking the trend, Sun Pharma shares dropped 2%.

Among the sectors, Nifty Oil & Gas jumped nearly 3% to lead gains, while Nifty Metal, Nifty PSU Bank and Nifty Consumer Durables gained more than 1% each. Nifty Pharma, Nifty Private Bank and a few other indices however, slipped into the red.

Broader markets also remained in the green, although they underperformed benchmark indices Sensex and Nifty. Nifty Smallcap 250 rose nearly 0.6% while Nifty Midcap 100 was up more than 0.6%. The…

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