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Nifty gains around 2%, Sensex nears 72,000: What is behind today's stellar rally
Sensex, Nifty Surge: The top gainer is ONGC which is up over 7 percent. It is followed by Adani Enterprises, Adani Ports, Reliance Industries, and Coal India.
Sensex and Nifty rallied over 1 percent each today after ending the last 2 weeks in the red, down 1.2 percent each. The gains come amid buying in strong index heavyweights, rise in Asian peers, as well as hopes of a US Fed rate cut. The interim budget which will be presented on February 1 may also be a reason for the surge. BSE Sensex soared 896 points to 71,637.61 while Nifty50 jumped 291 points to 21,429.60 today.
At Nifty, 37 stocks were trading in positive territory while just 13 were in the negative zone.
Who are the top gainers today?
The top gainer is ONGC which is up over 7 percent. It is followed by Adani Enterprises, Adani Ports, Reliance Industries, and Coal India.
Who are the top losers today?
The top losers are Cipla, Dr Reddy's Laboratories, Infosys, LTIMindtree and Bajaj Finserv.
Read more: Reliance share price at record high: What exactly is happening and why
What are the factors leading to the today's rally in markets?
Reliance Industries and HDFC Bank were the top contributors on Sensex. RIL was the top Sensex gainer as it jumped over 3.6 percent to its record high of ₹2,810 in intra-day deals today. HDFC Bank also gained 2 percent on BSE after RBI approved LIC to raise its ownership in the country's largest private sector lender.
Broad-based gains
Sectors including Banks, Financial Services, Auto, Metal, and Oil and Gas rose between 1 and 4 percent each.
Strong global markets
Chinese equities led a rally in Asian stocks after regulators took new steps to support the market. Oil climbed after a step-up in Middle East violence while Hong Kong's Hang Seng jumped 1.4 percent. Japan's Nikkei gained 0.8 per cent and South Korea's Kospi advanced 1.2 per cent. Australia's stock benchmark added 0.4 percent.
US Fed meeting
A two-day policy meeting of the US Fed is due this week even though a rate cut is not expected. The US central bank may start lowering borrowing costs at its next decision in March, experts predict as Bloomberg cconomists Stuart Paul and Estelle Ou said, “The stage is set for the Fed to take steps toward cutting rates in coming months. We expect the Fed to begin lowering the federal funds rate target range in March as it attempts to stick a soft landing."
