Why Did Stock Market Rise Today? Key Reasons Behind Sensex 1,078 Points Surge On March 24 – News18
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Benchmark indices Sensex and Nifty surged for the sixth consecutive session on Monday; Key reasons behind the stock market rally today
Sensex Surges Over 800 Points, Nifty Above 23,550; Key Reasons Behind Market Rally today and latest stock market updates
Stock Market Today: Indian equity benchmark indices Sensex and Nifty surged for the sixth consecutive session on Monday, buoyed by gains in banking and IT stocks. Foreign capital inflows and bargain buying further strengthened investor sentiment.
The BSE Sensex surged 1,078.87 points, or 1.40%, to settle at 77,984.38 after hitting an intra-day high of 78,107.23.
Similarly, the Nifty50 climbed 307.95 points, or 1.32%, to close at 23,658.35, after touching an intra-day high of 23,708.75 and a low of 23,433.50.
The total market capitalisation of all BSE-listed companies jumped by Rs 5.08 lakh crore to Rs 418.38 lakh crore.
Foreign Investors Shift Stance
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investment Services, noted a shift in Foreign Institutional Investors’ (FIIs) approach due to improving economic conditions and fair stock valuations.
“The strengthening Indian macroeconomy and reasonable valuations have turned FIIs from sellers into buyers, triggering massive short covering and sharp price surges,” he said.
However, he urged caution, citing uncertainty around April 2, the “reciprocal tariffs” day, which could impact investor sentiment.
FIIs, after heavy selling, turned buyers on some occasions last week, including a significant Rs 3,255 crore purchase on March 21. Despite this, FIIs have offloaded stocks worth Rs 31,718 crore in March (up to the 21st) while investing Rs 10,955 crore in debt markets during the same period.
India Outperforms Global Markets
Indian equities have outpaced US markets, with emerging markets—especially India—attracting increased attention, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
“Uncertainty in the US regarding growth and potential trade conflicts has shifted focus to emerging markets, where India has benefitted,” Bathini said.
Following a recent correction, Nifty rebounded from 22,000 levels, signaling resilience. “If Nifty sustains above 23,000, the Indian market is expected to perform well in the short-to-medium term,” he added.
Strong Economic Indicators Fuel Optimism
The bullish trend in Indian equities is underpinned by strong economic fundamentals.
“India’s macroeconomic indicators are improving, with robust tax revenues. The market has shown strength at the 23,000 level,” Bathini explained.
Looking ahead, upcoming Q4 earnings will be a key driver. “Corporate earnings will play a crucial role in sustaining the market above the 23,000 level,” he said.
While domestic factors remain positive, Bathini also cautioned about external risks, including the Trump-era trade war policies and geopolitical tensions, which could influence market movements.
Global Markets
Financial markets had a mixed start on Monday, with U.S. stock futures rising while the dollar fluctuated ahead of a week marked by key economic data, Chinese corporate earnings, and looming U.S. tariff hikes.
S&P 500 futures gained 0.6%, while Nasdaq 100 futures rose 0.8% in early Asian trading. Japan’s Nikkei and Hong Kong’s Hang Seng advanced 0.2% each.
The 10-year U.S. Treasury yield remained steady at 4.27%, having dropped nearly 40 basis points from its mid-February peak. Meanwhile, investor interest has shifted from U.S. equities to overseas markets, fueling strong rallies in Hong Kong and Europe, even as Wall Street faced declines.
Crude Oil
Oil prices remained stable on Monday as investors evaluated the potential impact of ceasefire negotiations in the Russia-Ukraine war, which could lead to increased Russian oil supply in global markets.
By 00:46 GMT, Brent crude futures dipped 8 cents (0.1%) to $72.08 per barrel, while U.S. West Texas Intermediate (WTI) crude edged down 5 cents (0.1%) to $68.23 per barrel.
Rupee vs Dollar
The Indian rupee appreciated by 12 paise, reaching 85.86 against the U.S. dollar in early trade. Meanwhile, the dollar index, which measures the greenback’s performance against a basket of six major currencies, inched up 0.04% to 104.16.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
