Share Market Rise: The Indian stock market today appeared firmly trading in the green mark on 8 August. The Sensex business jumped about 300 points in business. The market sentiment has been confirmed by US President Donald Trump’s change from India and strong signal from global markets. The Sensex Sensex rose 296.26 points to 81,007.02 during trading. At the same time, the Nifty rose 90.35 points to 24,831.35. The shares of Tata Motors, Mahindra & Mahindra, JSW Steel, Bajaj Auto and Tata Steel saw a gain of up to 3 percent.
There were 6 major reasons behind today’s rise in the stock market-
1) Expectation of improvement in Indo-US relations
US President Donald Trump has described the Indo-US relations as special, saying “there is nothing to worry”. Prime Minister Narendra Modi, while replying to this, said that he appreciates his comments “deep” and “fully” supports him. This statement with Trump and Modi improved the market’s sentiment. Market analysts say that these statements have increased the hope of decreasing trade war between the two countries.
2) Strong global signal
Before the opening of the Indian stock market, most of the Asian stock markets were also trading fast. South Korea’s Koppy, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng index were all trading in the green mark. Wall Striical Futures were also in the green mark, which is considered to be an indication of opening with the rise of the US stock market.
3) GST rate cuts expected to bounce demand
The recent announcement of GST rate cuts has also raised the morale of investors. “After September 22, when the new GST rates are implemented, the demand will be huge bounce, especially automobiles and consumer durables items,” said Vijaykumar, Chief Investment Strategist VK Vijaykumar of Geojit Financial Services.
4) Expectations of rate cut from Federal Reserve
Interest rates are expected to be cut in the US. The weak labor figures there have also strengthened the expectations of this deduction. “Federal Reserve is scheduled to meet on 16-17 September. The interest rates are expected to be reduced by 0.25 percent during this meeting,” said Prashant Tapse, Senior Vice-Pressurer (Resert) of Mehta Equality Limited.
5) Auto stocks boom
The GST Council has decided to reduce the GST rate on small cars from 28 percent to 18 percent. After this, most car companies have announced to reduce the price of their models. Due to this, the shares of auto companies saw a boom today. The Nifty Auto Index rose more than 1.5 percent to 26,718. Bharat Forge and Ashok Leyland shares saw a rise of up to 4 percent.
6) Metal stocks rise
Morgan Stanley has taken a positive stance on the steel sector in his report. Brokerage said that global conditions are getting better regarding this sector and demand is also being improved. After this report by Morgan Stanley, the shares of metal companies saw a boom today. Brokerage has increased its estimate of steel prices by 3 percent for FY 2027 and FY 2028.
What are the signs getting from the technical chart?
Anand James, the chief market strategist of Geojit Financial Services, said, “Closing over the 20-day SMA on Friday indicates that there is a sense of risk of going up and up in the market. If a breakout of 24,870 is available, the market may move towards 25,400. On the other hand, if the market could not move below 24,70000, if the market does not get 24,70000, then the market could not move below. The level of 24,075 can be seen. “
Also read- This stock charged 10% upper circuit for the second consecutive day, Ramesh Damani and Madhu Banana bought stake
Disclaimer: The ideas and investment advice given by experts/brokerage firms on Moneycontrol are their own, not the website and its management. Moneycontrol advises users to consult a certified expert before making any investment decision.