Stock market benchmark indices Sensex and Nifty traded significantly higher in early trading on Wednesday, buoyed by a firm Q2 earnings report, lower crude oil prices and sustained foreign fund inflow. BSE Sensex, the 30-share index, skyrocketed 1,414 points to a high of 82,520.40. The Nifty 50 topped the 25,400 mark.
Last seen, Sensex was trading at 82,360.78, up 1,254.13 or 1.55 per cent, while Nifty50 was quoted at 25,383.05, up 338.40 points or 1.35 per cent.
3 Key Factors Behind Rally
1. Lower Crude Prices
Crude prices have seen a drastic decline since the results of US midterm elections. In the early hours, Brent Crude, the global benchmark index, was trading at the level of $92-93 per barrel. WTI Crude was quoted around $86-87 per barrel.
"WTI crude oil prices remain relatively stable around the $86 per barrel mark, while the Indian rupee has extended its strengthening trend, currently trading around the 93.8 zone against the US dollar. Continued moderation in crude prices and rupee appreciation are providing a supportive backdrop for domestic equities," said Ponmudi R, CEO of Enrich Money.
2. FIIs ' Buying
The revival of foreign investment played a key role in the recent rally in the stock market.
"Nifty 50 has surged by 8.6% in just six trading days of this month. This surge was triggered mainly by the aggressive FII buying of Rs 53170 crores, so far this month. The dramatic change in the market environment was triggered by positive global cues for India from the weakening of the AI trade," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.