Share Market Rally: A spectacular rise was seen in the Indian stock market on Monday 20 January. Sensex jumped 454 points to close at 77,073 points at the end of trading. Nifty also increased by 141 points and closed at the level of 23,344. There was greenery in Broader Market. BSE midcap and smallcap indices jumped up to 0.8 per cent. The biggest rise was seen in banking, defense and telecom stocks. The market cap of companies listed on BSE increased by about Rs 3 lakh crore today.
Market experts said that there were 4 main reasons behind today’s rise in the stock market –
1. Trump’s policy concerns eased
America’s newly elected President Donald Trump said that his conversation with Chinese President Xi Jinping was ‘very good’. This statement has indicated reducing tension regarding trade between the two countries, after which a good rise was seen in the global stock markets today. American stock markets closed in the green on Friday. At the same time, growth was also seen in Asian indices like Hang Seng and Nikkei 225. “Trump’s soft stance on tariffs is expected to keep stock market sentiment bullish, at least initially,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
2. Banking shares become rocket due to quarterly results
Today’s rise in the stock market was led by banking stocks. Shares of Kotak Mahindra Bank jumped the most by 9%. This rise came after Kotak Bank’s strong December quarter results. The bank said that its net profit in the December quarter increased by 10 percent to Rs 4701 crore. Secondly, the Nifty Bank index jumped up to 2 percent during trading today. 11 out of 12 stocks included in the index were trading in the green.
3. Strength in rupee
The Indian rupee rose 14 paise to 86.46 against the US dollar on Monday. At the same time, the dollar index, which measures the strength of the dollar against the six main currencies of the world, fell by 0.22 percent to 109.10. Brett crude oil prices also remained stable in the international market and fell marginally by 0.12% to $ 80.69 per barrel. Due to this, the market sentiment got strengthened.
4. Technical Chart
Market analysts have advised to focus towards the resistance level of Nifty. Anand James, Chief Market Strategist, Geojit Financial Services, said, “Although the 23000 zone was successful in stopping a major decline, the technical structure of the recovery wave that arose last week now looks weak. Still, after Friday’s red candle, Despite this, most of the Nifty 50 stocks closed above their respective 10-day SMA (Simple Moving Average), which is a better sign than on Thursday. “We hope the market can move upwards again.”
He said, “We still see 23370/90 as the level to cross, but the target of 23550-640 still looks possible. The day is expected to break the initial range of 23270-140. We will work together, only after which a direction will be decided.” Nifty Defense Index is trading with a gain of 2.43% today, with all its 16 stocks in the green.
Also read- Heavy buying in Indian Overseas Bank shares, stock rises 6% after strong quarterly results
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