On October 15, a strong rise was seen in the Indian stock market. In early trade, the Sensex jumped more than 1,000 points and crossed 73,810. At the same time, Nifty 50 rose by about 299 points and crossed 22,900. The market was supported by buying in IT shares and fall in crude oil prices. Let us know the 4 big reasons for this boom…
How much rise in Sensex-Nifty?
At around 10:41 am on Thursday, BSE Sensex was at 73,810.61 with a gain of 1,028.72 points or 1.41%. At the same time, at 10:42 am, NSE Nifty 50 rose by 298.90 points or 1.32% to reach 22,921.60.
Among the 30 Sensex companies, Tata Consultancy Services (TCS), Tech Mahindra, Infosys, ICICI Bank, Axis Bank and Bharti Airtel were among the top gainers. On the other hand, a decline was seen in the shares of Bharat Electronics, Trent and Power Grid.
4 big reasons for the rise in the market…
1. Buying in IT shares
The rise in shares of IT companies gave strong support to the market. After the results of HCLTech, investors’ expectations regarding the IT sector have increased. Due to this, the IT index is likely to remain strong.
2. Fall in crude oil prices
In the international market, the price of Brent crude fell by 1.60% to $ 104.4 per barrel. The fall in oil prices is a relief news for the Indian market.
3. Impact of decline in American tech stocks
Inflation figures in America were higher than expected. Inflation which was 3.4% in August increased to 3.7% in September. This increased the fear of the US Federal Reserve raising interest rates again in October. Due to this concern, there was a sell-off in the American market and pressure on tech stocks. Nasdaq based on tech shares closed 1.88% lower on Wednesday.
According to VK Vijayakumar, Chief Investment Strategist, Geojit Investments, the fall in AI stocks can be positive for the Indian market. Foreign investors who invest money in AI shares by selling Indian shares can adopt their own strategy.
4. Keep an eye on foreign investors
On Wednesday, foreign institutional investors (FIIs) withdrew Rs 1,857.44 crore from the Indian stock market. Buying and selling by foreign investors may affect the further movement of the market.
Steep decline in Asian markets.
In contrast to the boom in the Indian market, there was pressure in many Asian markets. South Korea’s Kospi fell nearly 8%, while Japan’s Nikkei 225 index was down 5.07%. Shanghai Composite and Hang Seng were also trading in decline. American markets also closed with a decline on Wednesday.
Earlier on Wednesday, the Sensex had fallen 251.89 points or 0.34% and closed at 72,781.89. Nifty also fell by 99.25 points or 0.44% to 22,622.70.
Source: ndtv.in
