Sensex gains 700 points: Why is stock market rising today?

India Today

3 days ago

Stock markets witnessed a strong rally in the afternoon session on Monday, with both benchmark indices rising nearly 1%. The S&P BSE Sensex climbed 666.15 points to close at 80,523.94, while the NSE Nifty advanced 211.30 points to settle at 24,574.60.The uptrend was led by public sector banking and auto sector stocks. Banking stocks were in focus after State Bank of India (SBI) posted strong Q1 results, which prompted positive commentary from brokerages. Auto stocks also contributed to the gains, supported by optimism in the sector.'Market is slowly trying to digest the tariffs. After three weeks of downtrend, the market was able to sustain in today's rally. Asian markets are also supporting, and we can see some kind of buying interest that emerged after a brief pause,' said Kranti Bathini, Equity Strategist at WealthMills Securities Pvt Ltd."One thing is the market was able to close decisively around the zone of 24,500. That's where the buying interest has rebounded in the market. That is the reason we are seeing some renewed buying above 24,500 levels of Nifty," he added.On the Sensex, Tata Motors led the rally with a gain of 3.14%, followed by Eternal up 2.86%, Trent up 2.77%, SBI up 2.42%, and UltraTech Cement up 2.02%. The laggards included ICICI Bank, down 0.19%, Bharat Electronics lower by 0.09%, Bharti Airtel down 0.04%, Tech Mahindra slipping 0.17%, and Bajaj Finserv easing 0.18%.The broader market also ended higher. Nifty Midcap 100 gained 0.33% and Nifty Smallcap 100 rose 0.17%. India VIX, which measures market volatility, dropped 2.27%. Among sectoral indices, Nifty PSU Bank surged 2.21%, Nifty Realty advanced 1.94%, Nifty Healthcare Index rose 1.26%, and both Nifty Auto and Nifty Pharma gained 1.02% each. Other notable gainers included Nifty Financial Services 25/50 up 0.85%, Nifty Metal up 0.76%, Nifty FMCG up 0.72%, Nifty Private Bank up 0.72%, Nifty IT up 0.54%, Nifty Oil & Gas up 0.52%, and Nifty Media up 0.22%. Nifty Consumer Durables was the only major loser, slipping 0.69%.Strong domestic fund inflows also supported the rally. Data from the Association of Mutual Funds in India (AMFI) showed that net inflows into equity mutual fund schemes jumped 81% month-on-month to Rs 42,702 crore in July, as investors used the recent market dip caused by US-India trade tensions and muted corporate earnings as a buying opportunity.Assets under management in the mutual fund industry touched a record Rs 75.36 trillion. Contributions through systematic investment plans (SIPs) rose to a record Rs 28,464 crore, with the number of SIP accounts increasing to 91.1 million from 86.4 million in June.'Domestic investors remain steadfast in the India growth story, viewing US tariff tensions as a temporary headwind. They have stayed confident and bought aggressively despite the volatility,' said Venkat Chalasani, Chief Executive at AMFI.advertisement(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsMust Watch