Sensex crosses 80,000 mark again: What's driving the rally?
What's the story
The Sensex has once again crossed the 80,000 mark, rising by over 500 points in early trade today.
The rally comes after a correction of nearly 12-15% earlier this year.
The Sensex was up by 580.19 points at 80,175.78 at around 10:30am IST, while the Nifty jumped by 169.50 points to touch a level of around 24,336.75 at the same time.
Market drivers
IT stocks, foreign buying drive market surge
The recent Sensex surge can be attributed to several factors. A major boost came from IT shares' gains, with HCL Technologies leading the pack on the BSE Sensex with a 7.12% rise.
It was followed by Tech Mahindra (4.36%), Infosys (3.32%), Mahindra & Mahindra (2.82%), and Tata Consultancy Services (TCS) (2.30%).
Strong buying by foreign institutional investors (FIIs) and positive global signals also contributed to the rally.
Trade impact
US-China trade relations boost global markets
The Indian market's rally was largely driven by easing US-China trade relations.
US President Donald Trump announced that tariffs on Chinese imports could be cut down significantly after a deal, but not entirely.
His statement boosted global markets, easing fears of trade tensions between the two superpowers and instilling hope among investors of an improvement in international trade and business growth.
Foreign investment
FIIs return to the Indian market
Another major reason behind the market rally is the constant buying by FIIs. After a short stint of pulling out from the Indian market, these investors have returned in the last few sessions.
A weaker US dollar, better stock valuations after recent falls, and India's stable economy have attracted them.
The influx of foreign funds has greatly strengthened the market.
Tech trends