Sensex Jumps 2000 Pts; Investors Get Richer by Rs 7 Lakh Crore

The Indian stock market witnessed a significant rally in today’s trading session. While Sensex soared past 1800 points, Nifty 50 hit 23,800, thereby recovering from 5-month low in the previous session. The positive sentiment in the markets was driven by a strong US labour market data. Overall, the market cap of listed stocks on BSE rose by Rs 6.9 lakh crore to Rs 432.25 lakh crore.

Among the gainers, shares of ICICI Bank, Reliance Industries, SBI, Infosys, ITC, and L&T contributed towards today’s gain. Nifty PSU Bank and Realty rose about 3%, whereas Nifty Bank, Financial Services, FMCG, IT, Metal, Healthcare, and Oil & Gas also surged in the range of 1-2 per cent.

IT Stocks

Nifty IT index jumped by 2% on the back of upbeat US labor market data. Initial jobless claims also fell by 6000 to 213,000 for the week ending on November 16, which is lowest in 7 months. During October, the US witnessed a slowdown in jobs due to hurricanes and strikes. A strong employment data in the US suggests a positive sign for Indian IT companies as they earn a major proportion of their revenue from the region.

Investors are also keeping an eye on the upcoming FOMC meeting, which is set to take place in mid-December. Experts suggest a 25 bps interest rate cut in December.

Adani Stock

Following news reports of Gautam Adani’s indictment in US court, shares of Adani Group fell by about 20% in yesterday’s trading session. However by 1:40 pm today, shares including Adani Enterprises, Adani Green Energy and Adani Ports were up by 3%, 0.5% and 3%.

Rally in stocks

Stocks of ICICI Bank, Reliance Industries, SBI, and Infosys contributed almost 40% of the gains in the BSE.

While SBI surged by 5% to Rs 818, shares of JSW Steel, UltraTech Cement, Bajaj Finance, Adani Ports, Titan, ITC, Larsen & Toubro, HCL Technologies, TCS, and Bharti Airtel clocked gains of more than 2%.

Technical Analysis

Gaurang Shah, Head Investment Strategist at Geojit Financial Services said that Nifty is looking for support near the 23,300-23,000 levels. He notes that there will be no major corrections in the upcoming sessions.

Global Cues

Global markets also cheered as US markets closed higher on Thursday’s trading session. While Dow Jones rose 1.06 per cent, the S&P 500 gained by 0.53 per cent. Among the Asian peers, Japan’s Nikkei was up 0.68 per cent, while China’s CSI 300 and Shanghai Composite slipped by 3%.