Sensex surges 800 points, Nifty touches 26,100: What's driving rally?
What's the story
The Indian stock market witnessed a massive surge today, with the Sensex soaring nearly 800 points to hit an intraday high of 85,376.98. The Nifty 50 also followed suit, rising by 1% to reach a day's high of 26,130.90 points. The rally was fueled by expectations of a US Federal Reserve rate cut after weak consumer data from the US and gains across major sectors in India.
Market boost
Investor wealth surges as market capitalization rises
The rally in the Indian stock market resulted in a significant boost to investor wealth. The total market capitalization of BSE-listed companies jumped by nearly ₹5 lakh crore in a single day. Midcap and smallcap stocks also witnessed gains of over 1%. Both foreign and domestic investors were seen buying heavily, with banking, auto, metals, and energy stocks leading the charge.
Market dynamics
Global and local factors contribute to market rally
The current rally in the Indian stock market is driven by a combination of global and local factors. The prospect of lower US interest rates has boosted the global markets, while positive signals from India's economy have kept investor confidence high. Sectors such as defense and energy have also witnessed gains, further fueling the momentum of this market surge.
Future
What's in store for Nifty?
Experts think Nifty might reach levels near 30,000 by the end of next year. "We have a 12-month target of 29,500 for the Nifty 50. This target implies reaching 29,500 by calendar year 2026," said the head of research at ICICI Securities, Pankaj Pandey.