- Nifty broke a seven-day losing streak on Thursday.
- Sensex defied a four-day falling streak, gaining significantly.
- Declining US bond yields fueled a global market rally.
Key domestic equity indices--Sensex, Nifty--broke days of losing momentum on Thursday, August 20, with 50 share NSE's index trading in positive territory after seven days of decline, while BSE's 30-share index defied four days falling streak.
In the early hours, the market was trading significantly higher. At around 10:17 AM, Sensex was quoted at 77,511.57, up 601.89 points or 0.78 per cent. Nifty50 was trading at 24,224.25, up 145.95 or 0.61 per cent.
What Brings Rally In Indian Stock Market Today
- The firm global trend after U.S. bond yields declined shows a positive potential outlook for equity markets around the world.
“The market, which has been steadily downtrending for the last 12 trading sessions, appears set for a short-term reversal now. The market is in oversold territory, and a mild rally triggered by short-covering is likely. The decline in U.S. bond yields indicates a positive potential construct for equity markets globally," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
- Fresh foreign fund inflows fueled optimism as well. As per exchange data, Foreign Institutional Investors (FIIs) infused 407.99 crore on Wednesday.
- Rally in global markets-- especially in Asian peers--boosted investors' sentiment in the domestic market. Shanghai's SSE Composite, South Korea's Kospi, and Japan's Nikkei 225 were traded higher in the morning.
Top Gainers, Losers
In early trade, all stocks from the Sensex basket except Sun Pharma, Asian Paints, and Ultratech Cement were trading in positive territory, with Eternal, Infosys, Bajaj Finance, Axis Bank, Tech Mahindra, Kotak Bank, HDFC Bank, Bharti Airtel, TCS, Titan, Tata Steel, and HCL Tech being the top gainers.
Also Read: Domestic Brokerage Initiates 'Buy' Call For These 3 Stocks; Sees 20% Uptick Potential
Conclusion
Though the IT stocks are a key driver for the market today, the rally is backed by significant buying interest in banking, finance and other sectors as well. The broader market is trading higher as well, with the majority of small-cap and midcap indices trading in positive territory.
The market has been witnessing such a broad-based uptick after several days.