The stock market saw a strong rise in the stock market today due to softening of US dollars, decrease in prices of crude oil and high weight shares in the index. The two major indices made the longest jump in four years during 5 days. Apart from this, investors have also been encouraged by the progress in trade negotiations with the US and the detailed exemption.
The Sensex climbed 855 points or 1.1 per cent to close at 79,409. The Nifty closed at 24,126 with 274 points or 1.2 per cent. The Nifty has found 24,000 for the first time since the beginning of January. In the last 5 seasons, the Sensex has risen 7.5 per cent and the Nifty 7.7 per cent, which is the best performance of indices after 5 February 2021. Due to the rise in financial shares, the Nifty Financial Index jumped about 10 per cent to a new height. The total market capitalization of companies listed on the Bombay Stock Exchange has crossed 5 million million dollars for the first time since January 9.
HDFC Bank, which contributed the most to the Sensex growth, has risen 1.1 per cent. After this, Reliance Industries, Infosys, Kotak Mahindra Bank and Axis Bank also contributed well to the Sensex. Foreign portfolio investors placed bets on banking shares in the hope of improving the income of banks due to reduction in savings deposit rates. Foreign investors made a net buying of Rs 1,970 crore. Domestic institutional investors bought shares worth Rs 247 crore.
G. Chokalingam, the founder of Equinomics, said, “The stagnation that came after the merger with HDFC Bank has reduced. It has registered a strong growth in the March quarter.
He said, ‘Private banks can register two points in this financial year due to softening in inflation, reduced oil prices and interest rates. The fee will not affect the war due to the reduction of interest rate on deposits and the focus of banks on the domestic market. All these things have also encouraged investors.
Meanwhile, the dollar index weakened to 98.2, which is its lower level after March 2022. Softness in the dollar index has increased the capacity of investors to take risks in emerging countries like India. The MSCI Emerging Market Index increased by 2.2 percent from 11 to 18 April. The softening of the dollar was associated with the concern of possible changes under the leadership of the US Federal Reserve as President Donald Trump criticized the Fed’s decision not to cut rates.
Meanwhile, gold reached a record high of $ 3,406 an ounce and Brent crude slipped 3.3 per cent to $ 66 per barrel.
Further market movements will depend on quarterly results and business talks with the US. Siddharth Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services, said, “US Vice President JD Vance’s four -day visit to India and bilateral trade agreement also remains an optimistic stance in the market.”
First Published – April 21, 2025 | 10:56 PM IST
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