Share Market Rally: The way the monsoon has knocked in the country, in the same way the monsoon has knocked in the stock market as well. Contrary to the trend of the global market, the Indian market continues to rise, in which the 30-share Sensex has crossed the level of 64,400 for the first time, rising by 1500 points within three days. Sensex looks to cross 65,000 level easily in coming weeks. Both Sensex and Nifty gained 0.80 per cent on Friday after Bakrid holiday on Thursday.
The Sensex was at an all-time high of 64,475 while the Nifty rose to 19,123. Both the indices have rallied 13 per cent in the short term after Sensex and Nifty bottomed out in March. Money managers believe that this momentum can still be sustained.
What is the reason for the steady rise?
Many reasons are responsible for the boom in the Indian market, the most important of which is FII buying. Foreign portfolio investors have invested more than $10 billion in the Indian market in the current financial year. Currently, foreign investors are advised to specialize in Asian assets. Shopping in India and China can be especially beneficial.
The volatility in the Indian market has reduced. India VIX has declined by more than 20 per cent in the last three months and by more than 50 per cent in the last one year. India VIX fell 0.1 percent to 10.89 on Friday.
global market impact
Factory activity in China declined for the third month in a row in June. China’s official manufacturing PMI dropped from 49.2 in April to 48.8 in May and 49 in June. Meanwhile, the equity market trend in Europe is also positive. US index futures were trading lower.
Which sector is booming?
Strong performance in information technology stocks led to gains in the benchmark indices. Today Infosys shares rose 3 per cent to reach today’s highest level. Was at 1330. While the share of Tata Consultancy Services (TCS) rose two per cent to Rs 3,285. The Nifty IT index also rose by almost two percent to reach 29400. Automobile index was the best performer in Friday’s trade. The Nifty Auto index touched an all-time high of 15,132. Mahindra & Mahindra (M&M) was the top gainer in automobile stocks as the stock hit a lifetime high. Besides Mahindra, shares of Titan, Power Grid Corporation of India and Larsen (L&T) also hit all-time high today.