Business: Diwali party continues in the stock market for the third consecutive day. Due to which the National Stock Exchange’s main index Nifty and Bombay Stock Exchange’s main index Sensex have reached a high of 52 weeks. If we look at the data, Nifty has seen an increase of more than 631.25 points in three trading days. On the other hand, Bombay Stock Exchange’s main index Sensex has gained 2,132.73 points during this period.

If we talk about Friday, at 12:30 pm the Sensex is trading at 84,153.63 points with a gain of 692.50 points. Whereas during the trading session the Sensex rose by about 700 points and reached 84,172.24. This means that the Sensex also appeared at a one-year high on Friday. If we talk about Nifty, it is trading at 25,775.75 points with a gain of 191.05 points. Whereas during the trading session it reached a 52-week high of 25,781.50 points.

Due to this boom in the stock market, stock market investors have also got huge benefits. Which is linked to the market cap of BSE. If we look at the data, the market cap of BSE was Rs 4,59,67,652.36 crore a day earlier i.e. on October 14, which came down to Rs 4,68,65,434.88 crore during the trading session on Friday, October 17. This means that stock market investors have made a profit of about Rs 9 lakh crore in three trading days.

According to experts, the stock market seems to be getting the benefit of festive demand, fall in crude oil prices, rise in rupee, possibility of a deal with America soon, possibility of fall in interest rates, rise in Asian markets and fall in dollar index. On the other hand, the stock market is also celebrating the return of foreign investors. Let us also tell you why there is a rise in the stock market.

What is the stock market celebrating?

1. Return of foreign investors: After several months of heavy selling, foreign institutional investors (FIIs) are making a comeback in Indian stocks. According to NSDL data, between October 7 and 14, FIIs were net buyers in five out of seven sessions and invested more than Rs 3,000 crore in the secondary market. Their participation in the primary market stood at more than Rs 7,600 crore, while another Rs 68 crore was invested as on October 15, according to NSE’s provisional data.
2. Reduction in US bond yields: Due to the huge fall in US treasury yields, the fear of risk is increasing. The two-year yield has fallen to a three-year low, while the 10-year yield has fallen to a six-month low of 3.95 per cent. Lower yields make emerging markets like India more attractive to global investors, thereby increasing portfolio flow and liquidity.
3. Possible trade deal between India and America: Expectations of progress in India-US trade talks also boosted sentiment. US President Donald Trump said on Wednesday that Prime Minister Narendra Modi has promised to stop buying oil from Russia. Indian officials on Thursday said discussions are “ongoing” on strengthening energy cooperation between the two countries, which investors see as reducing trade friction risks.
4. IPO pressure reduced: After two weeks of pressure from big IPOs like Tata Capital and LG Electronics India, the movement in the primary market has calmed down. The absence of major issues this and next week has reduced liquidity pressure, freeing up investors’ money to buy in the secondary market.
5. Strength came from short covering: Due to sharp rise in frontline shares, there is a wave of short covering in all sectors, which is giving strength to the rise. Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said that still, there are a lot of short positions in the system, and the market strength may force the bears to retreat, leading to further short covering.
6. Rupee strengthened against the dollar: On Friday, the rupee started strong despite weak global cues due to pre-market sale of dollars by the Reserve Bank of India through public sector banks. The rupee touched 87.75 against the dollar, higher than Thursday’s close of 87.82, and has gained more than 1 per cent in two sessions. Traders said RBI intervention this week eased long-term speculative dollar positions, while the dollar index is set for its biggest weekly decline in three months amid concerns over a US government shutdown and expectations of further interest rate cuts by the Federal Reserve.
7. Rise in bank shares: Before the results of ICICI Bank and HDFC Bank, the rise in bank shares continued. Nifty Bank index increased by 0.6 percent, due to which ICICI Bank rose by 0.6 percent and HDFC Bank rose by 0.4 percent. Vijayakumar said that good results from HDFC Bank and ICICI Bank can support the market, and if Reliance also joins the rally after its results, then the market can maintain this rally further. He further said that strong results from banks could provide “fundamental support”, and the festive atmosphere and auspicious trading “could further add to the bullish sentiment”.
8. Crude oil decline: Oil prices continued to fall on Friday, with Brent crude trading around $61 per barrel and US WTI trading around $57.37 per barrel, both headed for weekly declines. The decline came after news that US President Donald Trump and Russian President Vladimir Putin planned to meet in Hungary to discuss ending the war in Ukraine, which would ease concerns about global supply disruptions. For India, a major crude oil importer, the fall in oil prices is a clear positive, which will help reduce the trade deficit, reduce inflationary pressures and improve corporate margins.