Share Markets: Today, on October 10, there was a strong rise in the Indian stock markets for the second consecutive day. The Sensex jumped by more than 470 points during trading. Nifty also increased to beyond 25,300. Except metal and pharma, heavy buying was seen in all other sectors. The biggest rise was seen in the shares of real estate, banking and IT companies. BSE smallcap and midcap indices also jumped up to 0.6 per cent.
Around 1.30 pm, the Sensex was trading at 82,643.69, up 471.59 points or 0.57 per cent. Whereas Nifty jumped 144.40 points or 0.57 percent and reached the level of 25,326.20. There were 5 big reasons behind today’s rise in the stock market-
1. TCS quarterly results as per expectations
After these results of TCS, brokerage firm Motilal Oswal has maintained its ‘Buy’ rating on this stock and has set a target price of Rs 3,500 for it. The good results of TCS brought enthusiasm to the entire IT sector. Shares of its rival companies like Wipro and Infosys also jumped by one percent.
2. Withdrawal of foreign investors
Long awaited foreign institutional investors (FIIs) are once again seen returning to the Indian stock market. FIIs have been buying in the Indian stock market continuously for the last three days. A day earlier on October 9, he had injected around Rs 1,308 crore into the Indian market. In the last three days he has made purchases worth about Rs 2,830 crore. Due to this, the sentiment of the stock market has strengthened.
3. Conversation between Trump and Modi
Prime Minister Narendra Modi on October 9 said he had spoken to US President Donald Trump over phone and reviewed the progress made in trade talks between the two countries. Experts say that any good signal regarding a possible trade agreement between the two countries can have a positive impact on the stock markets. Earlier, the American Trump government had increased the import duty on Indian goods to 50 percent. Apart from this, US Finance Minister Scott Besant said that in the coming time, India is preparing to buy less crude oil from Russia and more from America.
4. Buying in banking shares
Good buying was also seen in banking shares on Friday. Bank Nifty index breached the psychologically important level of 56,500 with a gain of over 0.6%. Analysts believe that this rise can take the banking index to the level of 57,300–57,600.
5. Liquidity returned to the market due to IPO refund
An important reason for the recent rise in the stock market is the money returned from the IPO market. Tata Capital’s ₹15,512 crore IPO and LG Electronics’ ₹11,607 crore IPO received an overwhelming response from investors. LG’s IPO was subscribed 54 times. Now the refunds of these IPOs have started returning to the investors’ accounts, which has brought fresh liquidity in the market. According to VK Vijayakumar of Geojit Investments, “The heat of the IPO market and liquidity from refunds have pulled the market higher.”
What will be the future course of the market?
Shrikant Chauhan, Head of Equity Research, Kotak Securities, says that as long as the Nifty index remains above 25,000 and the Sensex remains above 81,700, the bullish trend in the market is likely to continue. He said, “If the market succeeds in crossing the level of 25,250/82,300, then Nifty may go to 25,350-25,500 and Sensex to 82,900-83,200 in the coming days. On the other hand, if Nifty slips below 25,000 or Sensex 81,700, then the bullish trend may weaken.”
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