stock market boom
There was a great rally in the stock market on Wednesday. The market was closed on Tuesday due to holiday but when it opened on April 15, a fire broke out. Yes, as soon as the market opened, the main market index Sensex ran away by about 1400 points, all 30 Sensex companies turned positive. US President Donald Trump's positive statement regarding war changed the market trend. After the huge decline in the previous trading day, the market turned green today, which also benefited small investors who invested money in the stock market. In no time, investors earned Rs 9 lakh crore within a few minutes.
In early trade, Sensex rose by more than 1,400 points, or about 2%, to reach an intraday high of 78,270, while on the other hand, Nifty rose by more than 50,400 points, or about 2%, to reach an intraday high of 24,281. Nifty Midcap 100 and Smallcap 100 indexes gained more than 2% each. Investors' wealth jumped by Rs 9 lakh crore as the total market capitalization of companies listed on BSE increased to Rs 458 lakh crore from Rs 449 lakh crore in the previous session. Let us know about the factors due to which there has been such a spectacular rally in the market.
Why did the stock market run today?
- US-Iran talks expected to resume- The market got relief because the news came that America and Iran can start talks again soon to resolve their dispute. According to Reuters report, President Donald Trump said that talks between the two countries can resume in Pakistan in the next two days. This reduced the tension of investors to some extent, because the previous talks did not yield any significant results. Apart from this, the latest statement of US President Donald Trump has come, in which he has claimed that the war with Iran will end soon.
- Crude oil prices continue to fall- Crude oil prices continued to fall and Brent crude fell below $95 per barrel. It fell by about 0.40% to $94. At the same time, US WTI crude also fell by more than 1% to $90, due to which the market environment improved slightly.
- Global signs positive- One of the reasons behind the rise in the Indian stock market is that today a rise was seen in the major markets around the world, because the environment improved due to the expectation of resumption of talks between America and Iran. The MSCI index of Asia-Pacific shares rose 1.5% to a six-week high. Japan's Nikkei jumped 1% and Korea's Kospi jumped 3%. At the same time, in the American market also Nasdaq increased by 2% and S&P 500 increased by about 1.2%.
- Rupee strengthened- The strengthening of rupee also supported the market. The rupee strengthened by 12 paise to reach 93.23 per dollar in early trade on Wednesday. The reason for this was reduction in geopolitical tension and fall in crude oil prices.
- Technical Factor- After the decline in recent days, recovery is being seen in the market, where the level of 24,100 remains an important resistance. According to Shrikant Chauhan of Kotak Securities, if Nifty 50 goes above this level, it can reach 24,300 and if it closes above it, the rise can continue till 24,500.
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