Why is Sensex, Nifty rising? 4 factors behind today's strong Stock Market rally
Indian markets were riding on the strength it derived from the global markets, analyst Nilesh Jain said. Favourable global cues did the trick for local equities, he added. On Friday, US markets ended strongly with Dow 30 taking the lead and closing with 800-point gains
)
07:45 PM IST
Indian stock markets opened cautiously on Monday and later picked up momentum as the trading session progressed. At 1:30 pm, the BSE Sensex was trading at 60,653.66, gaining nearly 700 points or 1.16 per cent from the Friday closing level. The 50-stock Nifty50 was also up by over 1 per cent and was trading at 17,986.60, taking a 200-point lead around this time.
Markets picked up from where they left on Friday as Sensex ended with gains of 1.10 per cent while Nifty gaining by 1.20 per cent in the week gone by.
Also Read: Stock Markets LIVE: Bulls come to party as HDFC twins, Infosys lift Sensex, Nifty
Monday’s strength could be attributed to the following factors:
1) Indian markets were riding on the strength it derived from the global markets, analyst Nilesh Jain said. Favourable global cues did the trick for local equities, he added. On Friday, US markets ended strongly with Dow 30 taking the lead and closing with 800-point gains.
2) US markets are bottoming out as the dust around Fed Pivot is settling, analyst Sandeep Jain said. The sentiment has trickled down and as a result of this we are seeing a strong rally in markets, globally, he added.
US GDP report released last week points to economic recovery and quelled fears around the recession. The US economy grew at better-than-expected 2.6 per cent for the July- September quarter, snapping successive economic contraction. The growth has been in the middle of high inflation and interest rates. With favourable GDP data, it is unlikely that the Fed will change its stance on monetary policy and a Fed Pivot seems unlikely. A Fed pivot happens when the Federal Reserve reverses its policy outlook and changes course from expansionary to contractionary and vice versa.
3) Buying activity was prevalent in index stocks and broader markets. Auto, banks and financial services taking the lead.
4) Rupee was also trading flat at 82.42 against the Dollar lending stability to the domestic markets, expert Anuj Gupta of IIFL Securities said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
)
)
)
)
)
)
)
)
Star Health Q4 Results: Profit crashes 99.76%
AU Small Finance Bank Q4 Results: Profit rises by 18% to Rs 504 crore 
GIFT Nifty rises 20 pts; markets likely to open flat amid upbeat domestic cues
BluSmart allegations will erode investor trust, warns former BSE chairman S Ravi
Mcap of top-ten most valued firms jumps Rs 3.84 lakh crore; HDFC Bank, Bharti Airtel biggest gainers
