5 reasons why Sensex climbed 1,100 points today
Dancing to global tune, the BSE Sensex rallied nearly 1,100 points to comfortably trade above the 58,000 mark. NSE's barometer Nifty50 zipped past 17,300 level.
- Oct 14, 2022,
- Updated Oct 14, 2022 11:53 AM IST
While data showing a four-decade high inflation print in the US was worrying, a head-scratching surge in US stocks overnight, on short coverings, paved way for a rally in Asian markets on Friday morning. India was no exception.
Dancing to global tune, the BSE Sensex rallied nearly 1,100 points to comfortably trade above the 58,000 mark. NSE's barometer Nifty50 zipped past 17,300 level.
"The uncanny ability of the market to surprise was in full flow yesterday when the S&P500 shot up by 5 per cent from the day’s lows despite the September CPI inflation numbers coming slightly higher than expectations. Such sharp rallies happen due to market positioning. The market was oversold," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Investor wealth, as suggested by the BSE market capitalisation, climbed Rs 3.37 lakh crore to Rs 273.23 lakh crore from Rs 269.85 lakh crore a day ago.
Analysts noted that Nifty50 was volatile for the last couple of sessions and that the index was not showing any strength at highs. The immediate resistance for the index was placed at 17,150 level, which Nifty took out easily on Friday morning.
"If the market has to regain real strength, it needs to surpass 17,250 with some authority," Sameet Chavan of Angel One had said earlier today. The index has been trading above that level so far.
Read More: Mindtree shares rally 4% on strong Q2 results. Here's what analysts say
While data showing a four-decade high inflation print in the US was worrying, a head-scratching surge in US stocks overnight, on short coverings, paved way for a rally in Asian markets on Friday morning. India was no exception.
Dancing to global tune, the BSE Sensex rallied nearly 1,100 points to comfortably trade above the 58,000 mark. NSE's barometer Nifty50 zipped past 17,300 level.
"The uncanny ability of the market to surprise was in full flow yesterday when the S&P500 shot up by 5 per cent from the day’s lows despite the September CPI inflation numbers coming slightly higher than expectations. Such sharp rallies happen due to market positioning. The market was oversold," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Investor wealth, as suggested by the BSE market capitalisation, climbed Rs 3.37 lakh crore to Rs 273.23 lakh crore from Rs 269.85 lakh crore a day ago.
Analysts noted that Nifty50 was volatile for the last couple of sessions and that the index was not showing any strength at highs. The immediate resistance for the index was placed at 17,150 level, which Nifty took out easily on Friday morning.
"If the market has to regain real strength, it needs to surpass 17,250 with some authority," Sameet Chavan of Angel One had said earlier today. The index has been trading above that level so far.
Read More: Mindtree shares rally 4% on strong Q2 results. Here's what analysts say