Sensex Surges 2,000 Points, Nifty Crosses 23,900: Key Drivers Behind Today’s Rally
Sensex surged 2,000+ points to 79,161, and Nifty crossed 23,900, driven by robust US labor data, Adani shares recovery, and PSU bank gains. Markets rallied further on value buying and positive Maharashtra exit polls, adding ₹7.2 lakh crore to market capitalization.
The BSE Sensex witnessed a great rise in the Friday session, going up to a sharp 2,006 points and reaching 79,161.84. The Nifty50 also increased by 589 points to cross 23,900 and then closed at 23,938.90. This strong rally came after the market recovered from the five-month low due to positive US labor market data, value buying, and a comeback of Adani Group shares.
The aggregate market capitalization of firms listed on BSE rose by ₹7.2 lakh crore to ₹432.55 lakh crore, which reflected renewed investor confidence.
Major Contributors to the Rally
Leading contributors to the Sensex rally included heavyweights such as ICICI Bank, Reliance Industries, SBI, Infosys, ITC, and L&T, along with gains in TCS, Bharti Airtel, and Bajaj Finance. Sectoral indices also displayed positive momentum, with the Nifty PSU Bank Index advancing nearly 3%, supported by robust performances from SBI, Bank of Baroda, and Punjab National Bank.
Key Drivers Behind the Market Surge
IT Sector Performance
Nifty IT Index recovered nearly 2% as US labor market recovery surged. For instance, jobless claims in the US declined to a seven-month low, signaling stronger employment growth in November. This also bodes well for Indian IT companies as they derive a significant portion of their revenue from the US markets.
Adani Shares Recovery
Adani stocks rebounded sharply, with Ambuja Cement leading the way at 6%, followed by ACC at 4%. Adani Enterprises rebounded 2.5% and restored investor confidence by overcoming recent corrections.
Value Buying
Market corrections provided investors an opportunity to buy undervalued stocks. Mid cap and small cap indices had corrected 12% and 9%, respectively. A renewed interest was shown in them.
International Market Influence
Asian markets added positive momentum, with Japan's Nikkei, Korea's Kospi, and Australia's S&P ASX 200 rallying between 0.85% and 2%.
PSU Bank Rally
Public sector banks took the lead. SBI, Bank of Baroda, and PNB led the Nifty PSU Bank Index to gain 3% to 6,509.2
Maharashtra Political Sentiment
Exit polls reporting a possible win by the BJP-led Mahayuti alliance in Maharashtra boded well for market sentiment. Maharashtra being the country's big economic hub amplified the positive response.
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