Stock market today: BSE Sensex surges over 500 points, crosses 71,000; Nifty50 above 21,500 | India Business News – Times of India

Stock market today: Indian benchmark indices, BSE Sensex and Nifty50 witnessed a significant surge in their value today due to buying activity in the banking sector and positive global market cues. The BSE Sensex gained 1200 points, reaching a level of 71,900, while the Nifty50 crossed the 21,650 mark during Monday’s trading session.
BSE Sensex closed the day at 71,941.57, up over 1,200 points or 1.76%.Nifty50 ended the day at 21,737.60, up over 380 points or 1.80%.
The market displayed a clear bullish sentiment, with 38 Nifty stocks trading in the green, 11 in the red, and one remaining unchanged. ONGC, Adani Enterprises, SBI Life, HDFC Bank, and Sun Pharmaceuticals emerged as the top gainers, while Cipla, Dr Reddy’s Laboratories, Bajaj Auto, ITC, and Divi’s Laboratories experienced losses, according to an ET report.
Despite the positive momentum, the gains were limited due to selling by foreign institutional investors (FIIs) and an increase in crude oil prices. FIIs sold shares worth approximately Rs 2,144 crore rupees on Thursday, marking the seventh consecutive session of selling, as per exchange data.

Why BSE Sensex, Nifty50 rallied today:

1. Reliance Industries (RIL) driving the rally: The substantial surge in the BSE Sensex can be attributed to the strong performance of Reliance Industries (RIL), which emerged as the largest contributor to the index. RIL’s stock price experienced significant growth, driven by increased buying activity in energy stocks following the Middle East crisis. The crisis in the Red Sea shipping route began in November when Yemen-based Houthi rebels launched multiple attacks on commercial vessels navigating through the area, as a consequence of the Israeli-Palestinian conflict that commenced in early October 2023.
2. HDFC Bank shares witnessing increased buying: HDFC Bank played a crucial role in the positive movement of the Sensex during Monday’s trading session. The stock price of HDFC Bank rose by nearly 2% after the banking regulator permitted LIC to increase its ownership in the country’s most valued lender. The banking regulator granted LIC permission to acquire an additional 4.8% stake in HDFC Bank, with the possibility of increasing it to a maximum of 9.99% by January 24, 2025. As of December 2023, LIC holds a 5.19% stake in HDFC Bank.
3. Strong global market performance: Most major Asian indices exhibited positive trends following new measures taken by Chinese regulators to support the market over the weekend. Japan’s Nikkei 225 recorded a trading value of 36,132.90, a rise of 381.78 points or 1.07%, while China’s Shanghai Composite hovered around 2,918.81, witnessing an increase of 8.59 points or 0.30%. Hong Kong’s Hang Seng also displayed a positive trend, rising by approximately 0.98% around 9:30 am Indian Standard Time.
On Friday, the prominent indices of Wall Street demonstrated mixed results. The Dow 30 closed at 38,109.40, reflecting a growth of 60.30 points or 0.16%, while the S&P 500 settled at 4,890.97, a decline of 3.19 points or 0.07%. The Nasdaq Composite concluded at 15,455.40, recording a decrease of 55.13 points or 0.365%.
4. Hopes for a rate cut by the US Federal Reserve have been raised due to the continued moderation in US consumer inflation. The US Fed rate decision is scheduled for Wednesday night. While no rate cut is expected, market experts will closely monitor the commentary. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated the importance of the Fed’s commentary.

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