Sensex and Nifty rose in line with global markets to scale fresh record highs in early trade today. While Sensex climbed 302 points to 44,825, Nifty gained 90 points to 13,145. On Tuesday, Sensex ended 445 points higher at 44,523 and Nifty closed 128 points higher at 13,055. Nifty crossed and ended above the key level of 13,000 for time on Tuesday.
Benchmark indices have logged a spectacular rally in November with three sessions to go this month. Nifty which closed at 11,642 on October 30 has risen 1502 points to 13,145 today. Similarly, Sensex which closed at 39,614 on October 30 has gained 5,211 points till date. With Sensex and Nifty hitting record highs in almost every session in November, here's a look at the factors that led to the rally in benchmark indices today.
Transition of power in US
The US Federal government has recognised Joe Biden as the "apparent winner" of the November 3 election, clearing path for cooperation on a transition of power despite efforts by President Donald Trump to overturn the election. Appointment of former Federal Reserve governor Janet Yellen as Treasury secretary in the new administration has also led to positive sentiment in the US market.
Banking stocks push Sensex, Nifty to record highs; HDFC Bank, Axis top gainers
COVID vaccine hopes
The reports of a third coronavirus vaccine within a month have led brought bulls back into global markets. The latest to promise an effective vaccine after Pfizer and Moderna is drugmaker AstraZeneca. The firm said that late-stage trials showed its COVID-19 vaccine was highly effective, buoying the prospects of a relatively cheap, easy-to-store product that may become the vaccine of choice for the developing world. The Oxford-AstraZeneca vaccine need not be stored at freezer temperatures, making it potentially easier to distribute, especially in developing countries.
November FII inflows
Foreign institutional investors (FIIs) have infused a record Rs 55,552 crore into Indian equity market this month. This is the highest ever monthly inflows by FIIs leading to positive sentiment in the equity market.
Banking stocks
Banking stocks have been the leaders during the ongoing November rally. BSE bankex which closed at 34,138 on Tuesday added 488 points in the current session to reach intra day high of 34,626. Bank Nifty too gained 460 points in the session today to reach a high of 30,197.
Global markets
Asian shares rose after the Dow Jones Industrial Average closed above 30,000 points for the first time despite an ongoing pandemic, as progress in development of coronavirus vaccines kept investors in a buying mood.
The Dow rose more than 450 points, or 1.5%, to cross the milestone. The S&P 500 index rose 1.6%, climbing to its own all-time high. The technology-heavy Nasdaq composite picked up 156.15 points, or 1.3%, to 12,036.79.
Japan's benchmark Nikkei 225 jumped 1.7% to 26,607.63 in morning trading. Australia's S&P/ASX 200 gained 0.7% to 6,691.80. South Korea's Kospi added 0.5% to 2,630.04. Hong Kong's Hang Seng surged 1.3% to 26,931.98, while the Shanghai Composite edged up 0.1% to 3,406.45.
Stocks in news: Mphasis, Union Bank of India, Reliance Industries, State Bank of India, Ruchi Soya