Home Business Sensex zooms 724 points, Nifty ends at 12,120: Top reasons behind this...

Sensex zooms 724 points, Nifty ends at 12,120: Top reasons behind this rally – Times of India


NEW DELHI: Equity indices finished higher for the fourth straight session on Thursday with the benchmark BSE sensex rising over 700 points led by gains in banking, metal and media stocks.
The BSE sensex surged 724 points or 1.78 per cent higher to finish at 41,340; while the broader NSE Nifty settled 212 points or 1.78 per cent higher at 12,120.
All stocks in the 30-share BSE index finished in green with SBI, Tata Steel, IndusInd Bank, Bajaj Finance, Bajaj FinServ and HCL Tech gaining as much as 5.63 per cent.
On the NSE platform, sub-indices Nifty Metal, Media, Bank and PSU Bank gaining up to 4.40 per cent.
Here are the top reasons behind this market rally:
* US election results:
Global shares surged as investors awaited the outcome of the US presidential election and embraced the upside of more gridlock in Washington. The fate of the US presidency remained undecided as neither President Donald Trump nor Democratic challenger Joe Biden had secured the 270 Electoral College (EC) votes needed to win.
* Banking stocks:
Analysts said that strong earnings from the country’s biggest lender SBI lifted banking stocks. SBI has reported an upbeat September-quarter profit and said it expected stronger annual credit growth.

The NSE banking index rose for a fourth straight session since private-sector lender ICICI Bank reported a higher profit last week.
“The large banks have benefited from lower deposit rates and a higher liquidity during the Covid-19 crisis. The banking sector has had a very good run, but we need to see if credit growth picks up,” Samrat Dasgupta, CEO at Esquire Capital Investment Advisors, told news agency Reuters.
* Growth in services sector:
The country’s services sector activity ended the seven-month sequence of decline and registered growth in October, supported by improved market conditions amid easing Covid-19 restrictions, a monthly survey had showed on Wednesday.

At 54.1 in October, up from 49.8 in September, the seasonally adjusted India Services Business Activity Index posted above the 50 no-change mark for the first time since February. A print above 50 means expansion, while a score below that denotes contraction, according to the IHS Markit India Services Purchasing Managers’ Index (PMI).
* Fed meet:
The US Federal Reserve is scheduled to release its latest policy statement and may keep interest rates unchanged. With the final result of US presidential election still uncertain, the central bank’s policy-setting Federal Open Market Committee is expected to stick closely to its last statement and repeat its pledge to do whatever it can to help the economy through the coronavirus-triggered recession.

* Bank of England’s stimulus boost:
London stocks rose after the Bank of England extended a stimulus programme to cushion Britain’s struggling economy as England goes into a second national lockdown. The BoE ramped up its already huge asset purchase programme by a further 150 billion pounds ($195 billion) and said it expects Britain’s economy to shrink by 11 per cent in 2020, more severe than the 9.5 per cent contraction it had forecast in August.
(With agency inputs)

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