Sensex surged 2.7% at 59,537 points andNifty50 went up 2.5% at 17,759 points.- All the stocks on Nifty50 were trading on a higher note.
- Analysts believe strong
FII buying is one of the major reasons for the strong rally. - In August, FIIs bought ₹56,521 crore worth of assets including equity debt and hybrid in
Indian markets as against consistent selling in first six months of the year.
Sensex surged 2.7% to 59,537 points and Nifty50 went up 2.5% to 17,759 in Tuesday’s trade. All the stocks on Nifty50 were trading on a higher note, recovering most of the losses of the last trading session.
Bajaj twin stocks jumped 5% each becoming the top performers on Nifty50 followed by IndusInd Bank and Tech Mahindra.
Analysts believe strong FII buying is one of the major reasons for the strong rally. In August, FIIs bought ₹56,521 crore worth of assets including equity debt and hybrid in Indian markets as against consistent selling in first six months of the year.
“The Indian equity market witnessed a surprise and powerful rally to welcome Lord Ganesha. Our markets are showing resilience despite volatile global cues, and a surge in crude oil prices but such kind of rally bewildered everyone. This powerful rally can be attributed to delivery-based buying by the FIIs and short covering in the Futures & Options market,” said Santosh Meena, head of research at Swastika Investmart.
The Rupee too gained 51 paise in today’s trade to close at 79.45 paise per dollar. It hit a new low going below 80.11 yesterday.
“Rupee also witnessed a sharp appreciation against the USD despite higher crude oil prices which is a clear indication of FIIs' interest in the Indian equity market,” added Meena.
Moreover, global markets also bounced back after a black Monday.
“Markets made a remarkable recovery and gained over two and a half percent amid mixed global cues. After the gap-up start, the benchmark moved from strength to strength till the end and settled around the day’s high. All the sectoral indices participated in the move wherein banking and financials contributed the maximum. In line with the trend, the market breadth was also inclined strongly on the advancing side,” Ajit Mishra, VP - research at Religare Broking said.
Further, analysys believe upcoming domestic data like core sector and auto sales numbers will provide cues for market movement this week.
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