Bulls gallop on Dalal St on positive global cues
Sensex, Nifty rose over 1.45% as lower inflation, FII inflows, easing geopolitical, trade concerns, strong domestic sentiment helped fuel rally across sectors; Mcap on BSE rose Rs5.3 lakh cr to Rs440.19 ($5.14 trn)
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Mumbai: Benchmark BSE Sensex soared by 1,200 points while NSE Nifty closed above the 25,000 mark for the first time in seven months on Thursday following across-the-board buying triggered by expectations of potential trade deal between India and the US. Rising for the second day, the 30-share BSE Sensex jumped 1,200.18 points or 1.48 per cent to settle at a seven-month high of 82,530.74 with 29 of constituents ending higher. The index moved in a range in the first half, but picked up momentum in the afternoon session following sharp gains in banking, auto, IT and oil & gas shares.
Sensex rallied 1,387.58 points or 1.70 per cent to hit a day’s high of 82,718.14 in the second half of the session. The NSE Nifty surged 395.20 points or 1.60 per cent to settle at a seven-month high of 25,062.10. The 50-issue index had closed above 25,000 on October 15, 2024, previously. The market capitalisation (mcap) of BSE-listed companies rose Rs5.3 lakh crore to Rs440.19 ($5.14 trn). Investors’ wealth surged Rs9 lakh crore in two days of market rally.
“The market staged a robust rebound, closing with substantial gains, driven by a decline in domestic inflation and positive signals from the US regarding a potential trade agreement with India,” said Vinod Nair, head (research), Geojit Investments.
As many as 2,639 stocks advanced while 1,325 declined and 150 remained unchanged on the BSE.
“While benchmark indices gyrated sharply in early trades, it quickly regained the lost momentum and rallied sharply thereafter on all-around buying support despite pessimism in European and other Asian bourses,” added Prashanth Tapse, sr V-P (research), Mehta Equities Ltd.
Rate-sensitive sectors such as automobiles and real estate led the rally, supported by upbeat industry forecasts, Nair said adding that investor attention is now turning to the upcoming speech by the Federal Reserve Chair, which is anticipated to provide further clarity on the future policy trajectory, particularly in light of the recent easing in US inflation data. US President Donald Trump on Thursday claimed that India has offered to drop all tariffs on American goods.
