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Sensex, Nifty 50 rise 1% each: 3 reasons why Indian stock market is gaining. Will this continue?
Stock Market today: The Nifty 50 and Sensex opened on a positive note and surged by over one per cent each. Major reasons why
Stock Market today: Indian stock market saw strong buying across sectors in intraday trade today (March 21) amid positive global cues. The Nifty 50 and Sensex opened on a positive note and surged by over one per cent each. For the Sensex, heavyweight stocks such as HDFC Bank, Reliance Industries, SBI, and Larsen and Toubro were among the top contributors pushing it 1.05 per cent up at 72,861 with only one stock- Nestle- in the red.
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What's happening in the stock market today?
Nifty 50 was up 1.09 per cent at 22,076. Only two stocks - Hero MotoCorp and Nestle- were in the red. Tata Steel, JSW Steel and Hindalco gained between 2% and 3.3%, and were among the top five Nifty 50 gainers while all 13 major sectors logged gains, with the key financial services index rising 1.1%.
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Among stocks, Wockhardt gained 4% after launching a share sale to institutional investors and Rail Vikas Nigam added 4% on emerging as the lowest bidder on a $20 million project.
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Here are top reasons behind the stock market rally:
- US Fed signal on rate cuts: The US Federal Reserve left benchmark interest rates untouched at the range of 5.25 per cent to 5.50 per cent but said there could be three rate cuts this year which resulted in an uptick in global markets which seems to have impacted Indian stock markets as well.
- More positive global cues are also influencing domestic market sentiment as major Asian indices0 Korea's KOSPI and Japan's Nikkei- surged by 2 per cent following US Federal Reserve's meeting.
- Domestic investors are also growing in strength which could be leading to gains in the stock market as domestic institutional investors (DIIs) have emerged as a major driving force behind the recent resilience of the domestic market.
