Sensex jumps over 700 points: Why is the stock market rising today?
Benchmark stock markets saw a significant surge on Friday, with the S&P BSE Sensex climbing 695.99 points to reach 82,060.16 by 11:15 am. The NSE Nifty50 also experienced a rise, gaining 215.75 points to stand at 25,008.95.The rally was largely driven by strong performances in banking and financial stocks, following a regulatory change by the Reserve Bank of India (RBI).advertisementThe primary catalyst for this rally was the RBI's announcement concerning infrastructure financing. The central bank has implemented new norms that relax provisioning requirements for under-construction infrastructure projects. This adjustment reduces the amount of capital banks and NBFCs are required to set aside for potential loan defaults, thereby enabling them to extend more credit, especially in sectors like power, housing, roads, and railways.
The market responded positively to the RBI's policy update, with infrastructure financiers witnessing substantial gains. Shares of companies like Power Finance Corporation, REC, and IRFC saw strong intraday advances. Major contributors to the broader index gains included Jio Financial, Shriram Finance, Mahindra & Mahindra, and JSW Steel, with heavyweights such as Reliance Industries and State Bank of India also rising by 1-2%.Broader market sentiment was upbeat, although there has been volatility in recent sessions concerning small and mid-cap stocks. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted the potential for the Nifty to remain range-bound between 24,500 and 25,000 in the near term. He said, "The upper side of the range will be broken only on news of de-escalation in the Israel-Iran conflict or an abrupt end to the war. There is uncertainty on this front."advertisementDespite the positive market conditions, Vijayakumar also highlighted concerns about the broader market. He pointed out that while the Nifty remains stable, small and mid-cap stocks have corrected sharply, with some seeing declines of up to 2%."This trend may persist as excessive valuations and risk-off sentiment continue to weigh on SMIDs," he remarked. Investors might consider redirecting their capital into more stable, fairly valued large-cap stocks across various sectors such as financials, industrials, autos, and real estate.Eased policy from the RBI is creating a favourable environment for markets, yet global uncertainties and sector-specific valuation concerns still loom over the market's future trajectory. Investors remain cautious, watching for developments that could impact market stability.While domestic institutional buying on market dips provides some cushion, geopolitical tensions and crude oil price fluctuations remain potential threats. For instance, if crude oil prices exceed $85 per barrel, the market's lower range could be tested. As Dr. Vijayakumar notes, the market's path forward is contingent on these variables.Overall, today's market rally reflects a positive response to regulatory changes, but persistent global uncertainties suggest that further market shifts will heavily depend on external developments and ongoing valuation assessments. The optimism around infrastructure lending is a significant driver, but vigilance is necessary as the global landscape continues to evolve.Tune In
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Economic Times
40 minutes ago
- Economic Times
Macro indicators, retail participation aligning for a multi-decade bull run: Madhu Kela
Agencies So, this is maybe just the beginning for this sector which has not done too much maybe in the last three-four years. "Essentially focus on bottom-up ideas, segregate your time of doing research and time of execution. I repeat, again segregate your time of doing research and time of execution very clearly. It is not that I come up with an idea today, so I have to buy it tomorrow. Markets are volatile, something or the other will keep happening," says Madhu Kela, Market Veteran. So, last 16 years have been more than satisfactory for Indian investors and for Indian markets, how are the next three years looking? Madhu Kela: But that is the whole point that, are people who have truly believed in the longer range of India are the ones who have actually been able to do well and they have always taken advantage of any market mispricing or any market significant decline. So, over the next, I am sure three years will also be good, but I am very bullish from a next 10-20-year perspective also on India, things are really-really falling in place. If you look at every macro parameter and since the time I have been around this is the lowest bond spread we have seen between America and India and maybe in last 30 years. Is that not telling us something that the bond spread between 10-year bond yield of America and India are less than 1.5%. So, I feel now more and more people are actually recognising the India story and more and more money will come and I am so happy that finally the retail public is participating as they are actually benefiting, at least post covid. So, three years will be good. But let me tell you that good means what? Let us bifurcate the whole market first. So, we have roughly $5 trillion, 48% of the market is owned by founders, roughly 25-27% is owned by domestic institution, roughly 16-17% is owned by foreign institutional investors and balance is owned by real public. In this entire market cap, there are 580 companies which are above $1 billion market cap. But out of these 580 companies, roughly one-third and these are rough number, roughly one-third are trading at more than 50 PE multiple on a trailing basis. So, a balanced market is where I find a lot of attractiveness. So, when we say India will do well, if you just invest in Nifty, this is what has happened in the last three years you still made like 14-15% cagr. So, you will continue to hopefully get that 12% to 15% return if you invest in Nifty and if you just stick to really largecap. Where people like me see an opportunity is on the select sectors, select stocks, and mispricing in the market which happens from time to time. So, when we last visited your channel, I remember January to March and there was literally a lot of panic. So, if you buy India in that time and if you buy a stock specific that is the alpha which is left in the market. So, I will continue to believe that only. Essentially focus on bottom-up ideas, segregate your time of doing research and time of execution. I repeat, again segregate your time of doing research and time of execution very clearly. It is not that I come up with an idea today, so I have to buy it tomorrow. Markets are volatile, something or the other will keep happening. The last six-nine months have been so eventful whether it is Trump, tariff, global war, oil prices. Now again, today people are talking about Iran and Israel. These things will come and go. But if you keep your homework ready and if you are a really good stock picker and stock investor, these volatility gives you time and opportunity to invest and that to my opinion really creates that extra alpha which people like me are looking at. But you think that time is going to come sometime during this year because with all the geopolitical tensions and all that is happening around the world, the market has actually quite resilient. In fact for the last 28 days, it has just been range bound, we have done nothing at all at an index level. Madhu Kela: I would say even though market has been there, look at for instance what has happened to NBFC sector, look at the returns that the sector has given in the last three-four months even in a stable market. Markets have not gone anywhere. In fact, Nifty is only up 6% in last one year. Smallcap is down. Midcap is only up 4% in last one year. But you look at select stories. Even within the NBFC sector, there are something is up 30%, something is up 50%, something is up even 100% in this overall sector. So, that is precisely what I am saying. If we think markets are going to be in a range bound, that is the best time to do stock picking. So, we have got a list of multibaggers and the headline of this graphic is multibagger stocks not one but many which Madhusudan Kela over his careers has identified. Some of them have been 10x, 20x, 50x, even 100x. It starts with a legendary investment of yours, JSPL, Inox group of companies, Radico Khaitan, many more. But the last part we have kept it blank which is that which are the next new themes or ideas Madhusudan Kela is waiting on and we will call this as Madhusudan Kela's birthday gift to our viewers. Madhu Kela: So, I do not have all of these multibaggers, we do not know which one will be 10x and which one will be 100x when we make the investment. It is only a period of time when we start tracking these companies and they deliver, we develop more and more conviction. So, let us say Gujarat Fluoro for instance, I bought the stock maybe at Rs 400-500 five-six years back. At that time I did not know that it is going to be 10x, but I was sure that this company will do well. So, I feel it is not that it is lot of return is being made, so there will be no multibaggers in times to come. You see forget Indian market, even American markets have delivered so many multibaggers in the last four years. So, markets will always keep giving that opportunity. Today clearly, I see that opportunity, I do not know whether it will be 5x or 10x, but I remain very positive on select NBFC companies because the overall regulatory framework for the NBFC sector has dramatically improved in the last three-four months. The rate cut has boosted, their liquidity availability in the market because deposits going down, suddenly we see there is lot of liquidity available for these companies and lot of these companies have tightened their belt significantly in the last three-four years in the very tight regulatory regime. So, this is maybe just the beginning for this sector which has not done too much maybe in the last three-four years.
Time of India
an hour ago
- Time of India
What if Strait of Hormuz gets blocked? Oil Minister lays out India's options
As tensions heat up in Middle East, Union Oil Minister Hardeep Puri has said that India is preparing to source crude oil from outside the Persian Gulf and cut its own refined-product exports if the Strait of Hormuz is blocked to ship traffic. About a quarter of the world's oil trade passes through the key waterway, which links the Gulf to the Indian Ocean. Some market watchers are concerned that Iran, locked in a conflict with long-time adversary Israel, could choose to attack tankers sailing through Hormuz or close the strait altogether. About 40 per cent of India's total crude imports, and 54 per cent of its liquefied natural gas (LNG) supplies, would be at risk if the conflict leads to a closure of the Strait of Hormuz, the narrow sea passage between Iran and Oman that carries nearly 30 per cent of global oil trade and 20 per cent of LNG shipments. India is a net exporter of petroleum products, with refiners such as Reliance Industries Ltd. and Nayara Energy shipping to countries including the United Arab Emirates, Singapore, the US and Australia. It could reduce those shipments if needed to maintain sufficient stockpiles at home, Puri said. 'We have enough stocks' of crude and refined products, Puri told NDTV . 'We have enough diversified supplies' of crude, and 'even if there were to be disruption, we can source it from alternate sources.' Iran has previously threatened to close the strait in times of conflict, though there's no sign of that happening so far. Of the 5.5 million barrels of oil India consumes every day, 1.5 million pass through the waterway, according to Puri. 'I don't think this is something we are unduly worried about,' he said. There is ample crude available in the global market, which means it isn't supply but prices that are a concern, he said. India is a net exporter of petroleum products, with refiners such as Reliance Industries Ltd. and Nayara Energy shipping to countries including the United Arab Emirates, Singapore, the US and Australia. It could reduce those shipments if needed to maintain sufficient stockpiles at home, Puri said. India's product exports have averaged 1.3 million barrels a day so far this year, with Reliance and Nayara accounting for 82 per cent of shipments, Kpler data show. India eyes West Africa Indian refiners are considering West African nations and other alternative energy sources to secure additional fuel supplies, should Iran attempt to block the Strait of Hormuz — a critical choke point for global oil and gas transit —as its conflict with Israel intensifies, reported ET quoting oil industry executives. Since the outbreak of the Iran-Israel hostilities on Friday, top oil ministry officials and industry executives are analysing various scenarios and evaluating all possible responses to potential supply disruptions and price spikes. According to the oil ministry, India has total crude and petroleum product storage 'capacity' equivalent to 74 days of national consumption. This includes strategic reserves that can cover 9.5 days of demand. Total capacity includes inventory at refineries, pipelines, ships enroute, product depots, and empty tanks that can hold crude or refined products, executives told ET. Why Strait of Hormuz a point of worry? At just 33 kilometres wide at its narrowest point, Strait of Hormuz is considered the world's most important chokepoint for oil and gas. A quarter of the world's oil and 20 per cent of the world's liquefied natural gas passes through it, so mining the choke point would cause gas prices to soar. Iran has previously targeted vessels passing through this channel and has made repeated threats to close the route. Recently, ships passing through the area have also experienced jamming of their signals. The strait forms a narrow maritime corridor between Iran and Oman and is the main export route for crude oil and liquefied natural gas (LNG) from major producers such as Saudi Arabia, Iraq, Kuwait, the UAE, Qatar, and Iran. In response to the rising tensions, Qatar has asked tankers to wait outside the strait until they are ready to load. Meanwhile, Japanese shipping company Nippon Yusen KK has instructed its vessels to keep a safe distance from the Iranian coast while passing through the area.
Economic Times
an hour ago
- Economic Times
Hyundai Motor, Bharti Airtel among 5 Nifty500 stocks that touch 52-week highs on Friday
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
