The BSE Sensex and NIFTY 50, two benchmark Indian stock market indices, both eclipsed previous 52-week highs on the day of November’s derivative expiry.
On a day when people in the U.S. are celebrating thanksgiving, the Indian stock market benchmark indexes hit a new record high today. Thanks to last night’s FOMC minutes which indicated that interest rates will slowly increase going forward.
The front-line stocks of IT and banking played a major role in making of record highs in the Indian stock market on Thursday. The top index gainer for today was the battered sector Nifty IT. The significant short covering on the day of monthly derivative expiry supported the Nifty IT index today. Following the Nasdaq-100’s surge, the Nifty IT index was up 2.63%.
BSE Sensex: The benchmark index for India S&P BSE Sensex finished the day at a record-breaking high. It reached a new record high during the day of 62412.33 and ended the day with a gain of 762.10 points, or 1.24%, for the day. An index of 30 leading large-cap stocks increases for a third straight session.
NIFTY 50: Another Indian stock market benchmark index NIFTY 50 also made a new 52-week high of 18,529.70. NIFTY gained 216.85 points or 1.19% from its previous closing and closed the day at 18,484.10.
Though NIFTY is yet to make a fresh all-time high. But on a closing basis, it registered a new milestone today. The previous record closing of NIFTY was at 18418.80.
Nifty BANK: In addition, to being the top-performing index of the Indian share market for 2022, Nifty BANK made another new record high at 43,163.40. Nifty Bank crossed 43000 for the first time in its history since its inception and closed the day at 43,075.40 or gaining 0.81%.
Why did NIFTY 50 move today?
Dow Jones International’s two days of gains and yesterday night’s dovish review of the FOMC meeting minutes were the main drivers of today’s rally. The impact of the FOMC meeting minutes could be seen today in both Asia and Europe.
Today’s market gains in Asia and Europe were between 0.5 and 1%. The global rally allowed for today’s new record highs for the Indian stock market indexes.
We observed a significant decline in the U.S. dollar index and U.S. 10-year bond yields following the dovish remarks from the FOMC meeting minutes. That was sufficient justification for investors to wager on a jubilant rally today on the Indian stock market.
The important thing to remember about today’s rally is that it ended the market’s sluggish moves from the previous few sessions thanks to widespread involvement from different sectors.
Experts predict a superb December future and option (F&O) expiry in light of today’s movement in front-line stocks.
In the near future, they anticipate a significant catch-up rebound in beaten-down stocks from large to mid to small caps.
