Nifty reclaims 25,000: What is driving today's rally?
What's the story
The Indian stock market witnessed a strong rally on Monday, with the benchmark indices Sensex and Nifty both trading higher. The rally was largely driven by robust buying in bank stocks and positive global cues. At around 12:30pm the Sensex had gained by 398.88 points or 0.49% to reach 81,606.05, while the broader Nifty index rose to 25,013.55 after gaining up to 119.30 points.
Market drivers
Bank stocks lead the rally
The rally in the Sensex and Nifty was largely driven by strong buying in bank stocks. The Bank Nifty index rose for the fifth consecutive session on Monday, buoyed by robust second-quarter business updates from HDFC Bank and Kotak Mahindra Bank. All 12 constituents of the Bank Nifty were trading in the green during this period.
External factors
Positive global cues boost investor sentiment
The rally in the Indian stock market was also supported by positive global cues. Major Asian markets were trading in the green, with Japan's Nikkei 225 index witnessing a sharp rise. Wall Street futures were also up by around 0.4%, indicating a strong start for US equities today. The Indian rupee also appreciated by five paise to 88.74 against the US dollar in early trade, further boosting investor sentiment.