Diwali bonanza: Investors get Rs 6.9 L cr richer - top reasons behind stock market rally
Dalal Street witnessed a major surge as Sensex soared over 1,600 points and Nifty50 gained 2%. This rise in the market was supported by a decline in crude oil prices and returning foreign investor interest. The US midterm election results also contributed positively to market sentiment globally. Broader market indices and banking stocks joined in the rally, reflecting widespread investor…
Diwali brought a significant wealth boost for investors on Thursday, with the stock market soaring to unprecedented levels. The Sensex climbed over 1,600 points, while the Nifty50 gained 2%. This early Diwali bonanza added more than Rs 6.9 lakh crore to investors' wealth, buoyed by a combination of factors.
Firstly, crude oil prices slid below $95 per barrel, offering relief to oil-dependent India and supporting domestic equities. Secondly, the outcome of the US midterm elections improved global sentiment, as the Democratic Party secured control of both the Senate and the House of Representatives. This shift raised expectations of greater pressure on US President Donald Trump to end the US-Israeli conflict with Iran, leading to a decline in crude oil prices and improved global risk sentiment.
Foreign institutional investors (FIIs) also played a crucial role in the market rally, with renewed buying providing another significant boost. Provisions data showed FIIs buying Indian shares worth Rs 72.84 billion on Wednesday, marking their fourth consecutive session of buying. Additionally, a two-week high for the Indian rupee against the US dollar at 94.35 per dollar further strengthened investor confidence.
The bullish momentum was broad-based, with buying seen across market segments, sectors, and heavyweight stocks. Notable gainers included Bajaj Finance, Maruti Suzuki, IndiGo, Asian Paints, M&M, Infosys, Tech Mahindra, HCL Technologies, UltraTech Cement, TCS, ICICI Bank, and Bajaj Finserv. This broad-based rally across sectors and stocks resulted in the Nifty Midcap 100 and Nifty Smallcap 100 also ending in positive territory, reflecting the overall market rally.
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