Indian markets witnessed a major buying streak today, which helped push the Equity benchmarks up. The Sensex ended up gaining 444 points or 0.55% and was up at almost 81,442 points, and it gained almost 900 points or 1% during intraday trade and was up at 81,911 points. The Nifty, on the other hand, ended up gaining 131 points or 0.53% and was up at 24,760 points.
During the intraday, the Nifty was up by 1% and was up by almost 24,900 points. If we look at the BSE small and mid-cap indexes, they were up 0.39% and 0.65% respectively. Overall market capitalisation rose to almost Rupees 448 lakh crores. But why have the markets surged so suddenly?
The market is expecting a 25 base points cut from the Reserve Bank of India after its monetary policy which is scheduled to end on the 6th of June, some experts are also hoping for a 50 bps cut their belief is rooted in the fact that RBI will have a higher rate due to cooling inflation while others say that RBI wouldn’t have a rate cut more 25 bps as it maintaining caution. A weakening US Bond yield is always beneficial for emerging markets like India because this attracts more foreign investors to the Indian markets, in the previous the total Foreign Institutional investment was 1072.18 crores. Experts also point out that the weakening US Bond and dollar are signs of a slowdown in the US economy.
Another reason could be the Nearing of an India-US trade deal. According to various media reports India and the US could be just a few days away from concluding a trade deal even though the top negotiators from both sides have given positive signs of the deal being signed between India and the United States, a weakening dollar and the strengthening rupee also contributed to the growth of the Market. According to a Bloomberg report, the rupee gained 23 paise against the dollar. Favourable growth dynamics have contributed majorly to the growth in the market.
Let’s see if the markets will be able to deliver steady growth.
