Explained: Celebration in the stock market 50 days before Diwali, 6 lakh crore earned in one day
According to experts, due to the more than expected fall in US inflation, it is considered certain that interest rates may be cut by 0.25 percent or more in the Fed meeting in September. Due to which the dollar index has fallen.
India's stock market celebrated Diwali like celebrations about 50 days ago. Both Sensex and Nifty reached record levels. Sensex reached a record level of 83 thousand points for the first time. In fact, due to US inflation being lower than expected, the stock market witnessed a huge boom.
During the trading session, Sensex saw a rise of about 1600 points. On the other hand, Nifty saw an increase of more than 500 points. This means that both closed with a gain of more than one and a half percent today.
According to experts, due to the bigger than expected fall in US inflation, it is considered certain that interest rates may be cut by 0.25 percent or more in the Fed meeting in September.
Due to which the dollar index has fallen. According to CME Fedwatch, this increased the probability of a 25 basis point cut in Fed rates on September 18 from 66 percent to 85 percent, while the probability of a big 50-bps cut decreased from 34 percent to 15 percent.
According to experts, the price of crude oil is less than $72 per barrel. The effect of which is being seen in the stock market. Let us tell you what kind of figures have been seen in the stock market and what are the 5 reasons due to which the market has seen a boom.
Sensex and Nifty made a record
Both the major indexes of the stock market, Sensex and Nifty, reached record levels. The major index of Bombay Stock Exchange closed at 82,962.71 points with a gain of 1439.55 points or 1.77 percent.
However, during the trading session, the Sensex also reached a lifetime high of 83,116.19 points with a gain of about 1600 points. However, on Thursday, the Sensex opened at 81,930.18 points.
If we talk about the National Stock Exchange's major index Nifty, there has been a good rise in it. According to the data, it closed at 25,388.90 points with a gain of 470.45 points. During the trading session, Nifty rose by 515 points and reached a lifetime high of 25,433.35 points. According to experts, more increase can be seen in the coming days.
Investors benefited by Rs 6 lakh crore
Due to this rise in the stock market, market investors have also earned a lot. The profit and loss of stock market investors is related to the increase and decrease in the market cap of BSE.
On Wednesday, the market cap of BSE was Rs 4,60,76,150.02 crore. Which came down to Rs 4,66,66,051.26 crore on Thursday. This means that an increase of Rs 5,89,901.24 crore was seen. This is the profit of investors.
These stocks saw a rise
Talking about the rising stocks, the National Stock Exchange has seen a rise of 4.15 percent in Hindalco's stock. On Thursday, Bharti Airtel's stock rose by about 5 percent, reaching a 52-week high of Rs 1,650.75 on the NSE.
In the last four trading sessions, this stock has seen an increase of about 7 percent. By the way, after the market closed, the company's stock closed at 3.56 percent. NTPC's stock closed with a gain of 3.36 percent, Shriram Finance 3.36 percent and Grasim's stock closed with a gain of 2.94 percent.
Due to these reasons the stock market rose
Decline in US inflation: A decline in US inflation was seen on Wednesday. The CPI data for the month of August was seen at 2.5 percent. Whereas in the month of July this figure was 2.9 percent. Due to this, the stock market has got support.
Possibility of Fed rate cut: With the fall in inflation figures, the possibility of Fed rate cut has increased. According to CME Fed Watch, 85 percent people believe that Fed rate cut can be seen by 0.25 percent. Whereas only 15 percent people think that 0.50 percent rate cut is possible.
Crude oil prices fall: Oil prices have fallen more than 10 per cent in September due to weak Chinese demand and global supply concerns. Lower oil prices are positive for Indian equities, as India is a major importer of crude oil. Lower oil costs reduce inflationary pressures and help improve corporate margins, contributing to today's market rise.
Overseas markets rally: In sync with global markets, Indian equities also mirrored the global rally. Asian stocks surged on Thursday on the back of a tech rally on Wall Street and unexpected US core inflation data. MSCI's Asia-Pacific index rose 1.5%, and the Nikkei gained 3.3%. European stocks also moved higher on hopes of another ECB rate cut, keeping borrowing costs near 2022 lows.
Weak dollar index: The dollar index has fallen below the 102 level and is currently at 101.72. The weakening of the dollar is positive for Indian and Asian equity markets, as it makes emerging market assets more attractive to foreign investors.
Investment by foreign investors: Foreign institutional investors (FIIs) continue to play an important role in the strong performance of the Indian market. So far in September, FIIs have invested about Rs 17,016 crore in domestic equities, reflecting confidence in the resilience of India's economy. Since June, FPIs have been continuously buying equities, reversing their earlier outflow of Rs 34,252 crore in April-May.