On the last day of the trading week, the Mumbai and national bourses closed at fresh highs. The Nifty closed at a 52-week high.
Indian stock markets ended on a positive note after closing down for the last two days, giving investors a boost. All sectors ended in gains on the Nifty. International factors are favorable and domestic factors are responsible for this rise.
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US Inflation Report!
The US inflation report for October was released yesterday. This was 0.4 percent lower than expected. Less than October last year. Inflation is the lowest since last January. As a result, investors were confident that inflation in the United States would decrease and interest rate hikes in the next fiscal policy would decrease.
Subsequently, the US stock market reached its highest level in two-and-a-half years as investors got excited and traded. The Nasdaq gained 7 percent, while the Dow and S&P gained 500 points and rose 5.5 percent. The rise in the US stock market echoed in Asia and Asian stock markets also rose.
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Foreign investment credit
As interest rates in the US increased, investors who had withdrawn their investment from India started reinvesting. Due to this, foreign investment has increased in the last few weeks.
In Aktor, foreign investors bought shares worth Rs 8,430 crore and sold shares worth Rs 13,405 crore in September. Foreign investors have invested Rs 8,531 crore in the market in the first 10 days of this month. Foreign investment inflows have given confidence to domestic investors.
Rupee appreciation
India’s rupee has depreciated sharply against the dollar over the past few months. The rupee also faced a 40-year low. However, the rupee started to appreciate as the dollar index fell to 108 last night. The rupee rose to a seven-week high of Rs 80.71 against the dollar.
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These 3 factors were key to the stock market rally.
The Mumbai Stock Exchange was trading on a bullish note even before the morning trade started. As the trade started, the Sensex points started higher. This boom continued till the evening. Trading remained hot till the end as investors eagerly bought and exchanged shares.
By the end of the evening trade, the BSE Sensex rose 1181 points to close at 61,795 points. The Nifty gained 321 points to settle at 18,349 points on the national stock market. The Nifty fell after crossing a 52-week high in mid-trade.
7 out of 30 major BSE stocks fell. Shares of 23 other companies also ended in gains. In particular, corporate stocks including NTPC, HUL, ICICI, Dr. Reddy’s, Kotak Bank ended in decline.
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Shares of HDFC, HDFC Bank, Infosys, HCL Technologies and Tech Mahindra closed higher on the Nifty. Acer Motors, Hero MotoCorp, Britannia Industries, SBI, Mahindra and Mahindra declined. Metals and IT stocks rose between 2 and 3 percent. Automobile, FMCG and PSU banking stocks traded enthusiastically.
Last Updated Nov 11, 2022, 4:02 PM IST