BSE Sensex has climbed over 5,000 points in 8 sessions. Due to this, the stock market has returned to its glory. After a long time, there was a change in the attitude of foreign institutional investors on Thursday. He made purchases in the Indian market. Stock market sentiment has improved due to several reasons. Efforts are on to end the Russia-Ukraine Crisis. The price of crude has come down below $100. The US central bank Federal Reserve has raised the interest rate by 0.25 percent as expected.
On March 7, the Sensex had hit a 7-month low. It had broken 16 per cent from its record high. Excluding March 15, the Sensex has gained more than 5000 points in the last 8 trading sessions. Nifty 50 has gained more than 1400 points during this period. Foreign investors have made purchases for the first time since February 11.
On Thursday (March 17), the Nifty 50 gained 311 points or 1.84 per cent. At the end of trading, it stood at 17,287 points. The Sensex closed at 57,863 points, up 1,047 points, or 1.84 per cent. Experts say that the reason for the rally in the market was short-covering. The Indian market also got support from other Asian markets.
The biggest gain of about 7 percent in the Asian market came on the Hong Kong Stock Exchange. Japan’s Nikkei rose 3.5 per cent. China’s Shanghai Composite also gained over 1 per cent. On Wednesday, the effect of the rally in the US stock exchanges was visible on these markets. The Nasdaq Composite rose 3.8 percent on Wednesday. The S&P 500 also closed with a gain of 2.22 per cent. The Dow Jones jumped 1.5 percent.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The Fed raised the interest rate by 0.25 per cent, which is in line with expectations. It has forecast a further increase in interest this year. There was no. Since, there was excessive selling in the market. So the market jumped due to short-covering.”
He said that market confidence was boosted by Fed Chairman Jerome Powell’s statement that the US economy is in a strong position. He also said that it is capable of dealing with the impact of rate hike. “After a long time, foreign investors bought the market. The market was also supported by the softening of crude,” he said.
Investors’ wealth has increased by more than Rs 19 lakh crore in the last eight sessions. The market capitalization of BSE as on March 7 was Rs 241 crore. This increased to Rs 260 lakh crore on March 17. Investors’ wealth increased by more than Rs 4 lakh crore on Thursday alone.
On Thursday, except metal, all other sectors saw a rise. Bank, Auto, FMCG, IT, Realty have seen the biggest rise since March 8. Foreign investors on Wednesday bought shares worth Rs 312 crore. However, he has still sold a net worth of Rs 44,417 crore in March.
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