Sensex, Nifty rally on firm global cues: Key factors behind stock market surge

NEW DELHI: Equity indexes rallied on Friday as the BSE sensex benchmark crossed 1,000 points amid cross-sector value buying.
At 3pm, the 30-stock BSE index was up 1,033 points, or 1.7%, while the broader NSE Nifty was trading above 17,600.
Here are the key factors behind today’s market rally:
* PSU Bank, metal stocks led the market’s rally
Strong buying was witnessed during the banking quarter, especially PSU Bank stocks which are the top gainers in the market today, led by the largest state-owned lender in India. Degree (SBI).
* Promote investment Adani
All shares of Adani Group companies also traded higher for a fourth straight day, boosted by new measures taken by the group to restore investor confidence.
In fact, reports of US-based GQG Partners’ $1.87 billion investment in Adani stock have helped the market get over interest rate fears for the time being, turning investors away. foreign investors became buyers after six sessions of hiatus.
This is the first major investment in the group since a key short-seller report on January 24 triggered a drop in the stock price.
Aditya Mongia and Teena Virmani of Kotak Institutional Equities told Reuters: “This funding will allay concerns about Adani Group’s ability to raise capital to repay its debt.
* Federal Reserve Interest
Atlanta Federal Reserve Bank President Raphael Bostic expressed support for raising the Fed’s key lending rate lower than many investors anticipated. Bostic said the Fed may pause rate hikes by the middle of this year, earlier than expected.
His comments came as a welcome cheer for global investors as it raised hopes that the US central bank may not be stepping up its fight against inflation as much as it feared. hesitate.
showed few Americans filed for unemployment benefits last week despite rising interest rates to cool business activity. That is positive for workers, but the Fed fears strong employment could fuel inflation.
Traders have made forecasts for how high the Fed will raise interest rates and for how long.
* Global markets rise
Global markets also watched the announcement of the US Federal Reserve about raising interest rates.
Wall Street rose on Thursday for the first time in three days following Bostic’s comments.
In Asia, the Shanghai Composite Index rose 0.5% to 3,326.92 after a central bank official said China’s broad property industry was recovering from a debt-control slump that led to wave of developer defaults, rattling global financial markets.
The Nikkei 225 in Tokyo rose 1.6% to 27,934.01 after Japan’s unemployment rate fell in January.
Hang Seng in Hong Kong rose 1.2% to 20,555.46 and Kospi in Seoul was 0.2% higher at 2,432.07.


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