Rally Sensex: Sensex wins 718 points, Nifty recovers 10,250; key factors of the market recovery

NEW DELHI: Sustained purchases in most sectors, led by the pharmacy, consumer goods, banking, finance and information technology sectors, gave the Sensex equities equity barometer a solid acceleration of nearly 650 points during Monday's session.

After two consecutive losses, the market returned strongly after investors embarked on a new round of buying from different sectors, including finance.

The NSE Nifty index ended the session at 10,250.85 points, up 220.85 points or 2.20%, while the BSE Sensex rose 718.09 points, or 2.15% higher, at 34,067.40.

Let's look at the factors that pushed the market to a higher trajectory:

Strong purchase in heavy trucks: The shares of ICICI Bank, Reliance Industries, Larsen & Toubro, State Bank of India, Tata Consultancy Services and Axis Bank have registered a decent hype today. ICICI Bank has jumped more than 10%, contributing the most to the recovery of Sensex. The company's shares surged after the bank beat street estimates in its September quarter results. The bank recorded a 55.84% fall in its own profit compared to the quarter ended September 30 at 908.88 crore. Analysts of a poll on AND now have estimated profit at 815 crore.

The market applauded RBI's OMO plan: RBI's plan to buy 400 billion rupees of government bonds via open market operations in November, with the aim of injecting liquidity into the system, constituted a welcome relief for the worried market of the liquidity crisis sparked by the failures of a major infrastructure finance company. The Indian bond, rupee and equity markets all gained on Monday after announcing that the RBI would purchase Rs. 400 billion in government bonds through open market operations in November with the aim of injecting liquidity into the market, said Reuters.

Global indices have been improved: A reversal of global indices has given hope to local investors. European stocks opened in positive territory on Monday in a timid rebound after a sale, Reuters reported. In the UK, the FTSE 100, the German DAX and the French CAC 40 climbed up to 1%.

Easy crude oil prices: Oil prices have fallen today under the effect of the rising US dollar and fears of a slowdown in demand due to weak economic growth. However, the prospects of a tight offer after the entry into force of the sanctions imposed by the United States on Iran are still threatening, but the market expects an increase in the Saudi Arabia to the extent that it has promised to maintain an adequate supply of the oil market. Brent crude futures and West Texas Intermediate (WTI) futures were trading in the red.

more soon…