Share Market Update: Who would have thought that the Indian stock market, which started the year 2025 with a huge decline, would reach its biggest record by the end. On Wednesday 26th November, not only did the continuous decline in the market for the last 4 sessions stop, but the losses incurred in these 4 sessions were also compensated in one fell swoop. Sensex ended trading today with a rise of more than 1,000 points. Now Sensex and Nifty are just a short distance away from their record levels and market experts have no doubt that the market can cross its record levels this week.
Today Sensex closed at the level of 85,610 points with a jump of 1,023 points. Nifty also rose by 321 points and closed at 26,205 points. Earlier, the market was showing a decline for 4 consecutive sessions on both the benchmarks, but in one stroke on Wednesday the market made up for all four days. After all, what did the market which was under constant pressure achieve, that suddenly it started showing such a sharp rise. There are mainly 4 such factors which have become the reason for the sharp rise in the stock market.
Just a few steps away from making a record
The stock market is moving towards reaching its historical high soon. Till now, the peak point of Sensex has been 85,978, which it achieved in September, 2024. Obviously, if Sensex achieves a further rise of 369 points then it will reach its all-time high. Similarly, Nifty also touched its all-time high last year with 26,277 points. Obviously, if Nifty achieves another rise of 73 points this week, it will also reach its all-time high. Stock market experts believe that based on the signals coming from the global market, both the benchmarks can create their own records this week. He also believes that if Nifty achieves its record level then it can also go to the level of 26,500.
What are the reasons for the sharp rise
The recent fall in the rupee against the dollar and the withdrawal of foreign investors had a deep impact on the stock market. This was the reason why it was showing a decline in the last 4 trading sessions. But, some good signals from the global market today made the investor sentiment positive in the market and there was heavy buying. This is the reason why there was a continuous rise in the market since this morning and ultimately the Sensex achieved a rise of more than 1 thousand points. For now, let us look at some important reasons for the rise in the market.
1- Signal of cut came from Fed
What attracted the stock market the most was the signal from the Federal Reserve to cut interest rates. This indicated bullishness in Asian markets and stocks in sectors like IT, Metal performed strongly. In morning trading, all 16 sectors were seen in the green. A jump of 1 percent was also seen in small cap and mid cap. There was a jump of 1 percent in most Asian markets. If interest rates go down further in markets like America, then there is an opportunity for foreign investors to invest money in markets like India. This is the reason why the Indian stock market got a positive signal from the Fed’s rate cut.
2- Purchasing by foreign investors
As soon as the Federal Reserve signaled a cut in interest rates, foreign investors increased their buying. Foreign investors made purchases worth Rs 4,697 crore in the market on 25 November, the impact of which was visible on the trading on 26 November. Market experts say that small investors should also take advantage of this situation. Domestic investors have also made purchases worth Rs 3,912 crore in the market.
3- Big bet on big companies
A major reason for the surge in the stock market is that today investors have placed big bets on big companies also. These heavyweight stocks like HDFC Bank, ICICI Bank and Reliance Industries, which contribute up to 30 per cent to Nifty-50, have seen a rise of 1 per cent each. On November 25, the volatility index also remained around 12, which shows the stability of the market. This is the reason why Bank Nifty also touched the historic level of 59,515 points on November 25, which was led by companies like Axis Bank and IndusInd Bank.
4- Softness in Brent crude
One reason for the sharp rise in the stock market is the softening of crude oil prices. Brent crude futures fell 89 cents, or 1.4 percent, at around $62.48 per barrel. WTI also fell 89 cents or 1.5 percent to $ 57.95 per barrel. Despite the ongoing tension between Ukraine and Russia, the fall in crude has given a big boost to the market.
5- Technical factors are also responsible
Technical factors are also responsible for the sharp rise in the stock market. Nifty crossing the level of 26 thousand means that positive sentiment has once again returned in the market. It is estimated that Nifty may once again reach the level of 26,400 to 26,500. However, if there is a decline, it may also fall to the level of 25,800 to 25,750. This estimate is for the coming 50 days.
