Bull Run In D-Street: Sensex Surges Over 1,000 Points At 74k, Nifty Above 22,490 | Top Reasons Behind Rally

Stock Market, Bull Run, Sensex, BSE, Nifty, NSE: Indian benchmark indices on Thursday gained over 1.5 per cent each. The 30-share NSE Nifty index gained over 1.65 per cent or 365 points reaching 22,283, while the border BSE Sensex jumped 1.53 per cent or 1,110 at 74,095 as of 2:45 pm on March 28, 2024.

"Nifty weekly contract has highest open interest at 22500 for Calls and 22000 for Puts while monthly contracts have highest open interest at 22500 for Calls and 22000 for Puts. The highest new OI addition was seen at 22400 for Calls and 22100 for Puts in weekly and at 22400 for Calls and 22100 for Puts in monthly contracts. FIIs decreased their future index long position holdings by 9.82 per cent, decreased future index shorts by 3.23 per cent and in index options by 18.88 per cent increase in Call longs, 13.26 per cent increase in Call short, 22.89 per cent increase in Put longs and 16.29 per cent increase in Put shorts," said Anand James, Chief Market Strategist, Geojit Financial Services.

Today's bullish run on Dalal Street was driven by several factors, like favourable global cues, gains in financial stocks, upbeat FII inflows, and positive revisions in India's GDP growth forecast. All these factors are explained below.

Top Reasons Behind The Rally

Global Cues Fuel Bullish Run

The bullish momentum on Dalal Street today was influenced by positive global cues, alongside gains in financial stocks. The combined market capitalization of all listed stocks on the BSE stood at Rs 383.64 lakh crore, reflecting the upbeat sentiment prevailing in the market.

Optimistic Global Markets

Wall Street's positive performance set an optimistic tone, with the Dow Jones Industrial Average surging 1.22 per cent, the S&P 500 climbing 0.86 per cent, and the Nasdaq Composite rising 0.51 per cent. In Asia, while Chinese stocks rebounded, Japan's Nikkei 225 faced a decline. However, Hong Kong's Hang Seng index and the Shanghai Composite in China saw significant gains. Australia's S&P/ASX 200 also experienced a notable increase.

US Federal Reserve's Stance

Amid concerns over US inflation data, the recent dovish commentary from the US Federal Reserve provided support to global stock markets. The central bank maintained its projection of three rate cuts for the year, instilling confidence in investors.

Financial Sector Rally

A key driver of today's bullish trend was the rally in banking and financial services stocks. The Nifty Bank index gained nearly 1 per cent, while Nifty Financial Services rose more than 1 per cent. This surge followed the relaxation of regulations by the Reserve Bank of India (RBI) regarding lenders' investments in alternative investment funds (AIFs). The move lifted sentiment and spurred gains in heavyweight stocks like Bajaj Finance and Bajaj Finserv.

FII Inflows and GDP Outlook

Foreign institutional investors (FIIs) continued to show strong interest in the Indian market, with net purchases worth Rs 2,170 crore in the previous trading session. Additionally, upgrades in India's GDP growth forecast by S&P Global and Morgan Stanley contributed to the positive sentiment. S&P Global raised its forecast for India's GDP growth in FY25 to 6.8%, while Morgan Stanley adjusted its GDP growth projection for FY25 to the same figure. They also anticipate growth of 7.9 per cent for FY24, highlighting the country's robust economic outlook.

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