Share Market: After three days of decline, a tremendous rise was seen in the stock market on Wednesday. Both benchmark indices Sensex and Nifty made significant gains. The bullish trend in the market continued on Thursday also. During trading on Thursday, both the indices reached lifetime high levels. Where Nifty crossed 26,300. At the same time, Sensex also crossed the mark of 86,000 for the first time. At 10:19 am, Nifty was seen trading at 26,278.00, up 73 points or 0.28 percent. At the same time, Sensex was at the level of 85,903.02 with a gain of 294 points or 0.34 percent.
Market experts believe that the stock market has gained momentum due to expectations of improvement in business results in the third quarter and better macroeconomic environment. Banking and market expert Ajay Bagga told ANI that the Indian stock market is in a good position to achieve its all-time high level of 85978 on September 27, 2024. If the market closes above this level, it could open the way for more rapid recovery in those segments of the market which have performed poorly in the last 14 months. Experts believe that corporate earnings are expected to improve in the second half of FY26 due to falling inflation, improvement in consumption, supportive fiscal and monetary policies.
Reasons for the rise in the stock market
- One reason for this rise in the stock market is the increasing expectations of rate cut from the Federal Reserve. America’s weak consumer data has further increased the possibility of an interest rate cut next month. According to CME Group’s Fedwatch data, 85 percent of people believe that the US Federal Reserve and Jerome Powell will reduce the interest rate.
- Due to the good start of the index on Wednesday, almost all the Sensex stocks came in the green. Adani Ports was the biggest gainer in early trade, gaining 1.93 percent. After this, Axis Bank rose by 1.90 percent, Trent by 1.79 percent, Tata Steel by 1.74 percent and Bajaj Finance also rose by 1.57 percent. Sensex gained strength due to buying in banking, metal and financial stocks.
- Apart from this, after one hour of early trade, Nifty Midcap 100 gained 1.13 per cent, while Nifty Smallcap 100 gained 1.21 per cent. All sectoral indices were in the green. Nifty Metal gained 1.93 per cent, Nifty PSU Bank gained 1.60 per cent, Nifty Consumer Durables gained 1.56 per cent, while Nifty IT, Nifty Pharma, Nifty Auto and Nifty Financial Services also registered good gains.
- Crude oil prices are continuing to fall, which further strengthened the market. Brent crude fell to Rs 62.48 per barrel, which is the lowest level since October 22. Meanwhile, Ukraine’s agreement with the US on a peace deal could help end the war with Russia. If everything goes well, then some restrictions on Russian energy may also be removed, due to which the supply may increase at the global level.
- The Monetary Committee meeting of the Reserve Bank of India (RBI) is going to be held next month. According to Morgan Stanley, this time also the Reserve Bank can cut the repo rate by 0.25 percent. This will help banks in reducing interest on loans.
- Another positive factor for the market is the continuous buying of Indian shares by foreign investors. Yesterday, FIIs bought Indian shares worth Rs 4778 crore in the cash market. Whereas domestic investors bought shares worth Rs 6247 crore. Experts believe that there will be more buying in the domestic stock market.
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Stock market showed strength, Sensex reached near all-time high; Nifty also crosses 26000
