Investors Add Rs 16.1L-Cr Wealth In Biggest Market Rally In 4 Yrs
After starting the trade on an optimistic note, the 30-share BSE benchmark gauge Sensex further jumped 2,376.18 points
The Sensex gained 3,041.5 points intra-day, marking the biggest rally in four years since February 2021. The Sensex closed 2,975.43 points up, at 82,429.9. The Nifty-50 gained 3.82 per cent closing at 24,924.7 points gaining 916.7 points.
Market saw a relief rally as fear of war receded with the Western border airports being opened and people returning to their homes in forward areas after the unexpected ceasefire announced on Saturday afternoon.
US-China tariff deal, Russia-Ukraine ceasefire talks added to bullish sentiments in the domestic and global market. From a situation of extreme pessimism last week both on the domestic and global stage, on Monday market moved into a highly positive and encouraging scenario for risk takers.
The volatility index, India VIX, cooled off by 14.98 per cent to 18.39, indicating a sharp decline in market volatility in coming days.
“Apart from thawing geo-political uncertainties, the US-China trade deal, the US-UK trade deal, the India-UK Free Trade Agreement, and strong AMFI data are fuelling investors’ sentiment,” said Devarsh Vakil, head – prime research, HDFC Securities.
Both US and China announced a temporary rollback of trade levies for an initial 90-day period. Following two days of negotiations, the combined 145 per cent US duties on most Chinese imports will now be reduced to 30 per cent, analysts said.
"US stock futures surged after the White House announced a trade deal with China - Dow futures gained 805 points, or 2 per cent, S&P 500 futures climbed 145 points, or 2.5 per cent, and Nasdaq 100 futures rose 665 points, or 3.3 per cent," said HDFC Securities' Vakil.
“The Nifty witnessed its best day in four years as multiple positive developments triggered a risk-on sentiment. Technically, the index has broken out of recent consolidation across multiple timeframes, confirming a positive trend,” said Rupak De, senior technical analyst, LKP Securities.
US-aligned IT index emerged the top gainer, (best intra-day gain since April 2020), followed by realty and metals.
Both foreign and domestic institutions were net buyers of equities worth Rs 1246.48 cr and Rs 1448.37 cr respectively.
