Mumbai There was tremendous growth in the domestic stock market on Thursday. Softening of crude oil prices, strong buying in banking and IT stocks and rise in shares of Reliance Industries breathed new life into the market. The 30-share BSE Sensex rose 1,533.72 points to close at 74,315.61.
Strong jump in Sensex, enthusiasm returned among investors
During trading it had climbed 1,548.4 points to reach 74,330.29 points. NSE Nifty also closed at 22,997.35 points, up 374.65 points or 1.66 percent. This is the highest level of Nifty since September 25. Among the 30 companies included in the Sensex, Tech Mahindra's shares rose the most by 4.61 percent. Apart from this, there was a rise of 4.17 percent in ICICI Bank, 2.94 percent in Bharti Airtel, 2.77 percent in Eternal, 2.58 percent in HCL Technologies, 2.51 percent in HDFC Bank and 2.28 percent in TCS.
Jio IPO price fixed, can raise ₹30,213 crore
Reliance Industries shares jumped 4.03 percent. Its telecom and digital services arm Jio Platforms has set a price range of Rs 1,065 to Rs 1,119 per share for its initial public offering (IPO). With this, about Rs 30,213 crore can be raised at the upper level. With this, it can become the biggest IPO of the country till date. Under this IPO, a maximum of 27 crore new equity shares of face value of Rs 10 will be issued.
Tech Mahindra shines, Reliance also sees strong rise
The issue will open on Wednesday, October 21 and close on Friday, October 23. Shares of Bharat Electronics, Trent and Hindustan Unilever, included in the Sensex, declined. Global oil benchmark Brent crude fell 2.34 percent to $103.6 per barrel. Geojit Investments Ltd. “High valuations of artificial intelligence (AI) companies and concerns over rising inflation in the US led to a selloff in technology-based global markets,” said Vinod Nair, head of research at ICICI Bank.
Relief from fall in crude oil prices
Due to this, the Indian market looked relatively attractive and investment increased in the shares of domestic big technology companies, private financial companies and big companies considered safe for investment. Nair said that the fall in bond yields, stability in the rupee and softening of crude oil prices also supported the market sentiment. The prospects of review of Securities Transaction Tax (STT) also increased the risk appetite of investors. According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 1,857.44 crore on Wednesday.
Weakness in global markets, yet Indian market remains strong
Ponmudi R, chief executive officer, online trading and wealth management company Enrich Money, said, “There was a broad rally in the Indian stock market on Thursday and gains in major indices strengthened as trading increased. This rise compensated for Wednesday's decline and both the indices remained close to the day's highs despite the weak trend in global markets. He said shares of information technology companies remained on the rise.
What will the market keep an eye on going forward?
Good buying was also seen in shares of private banks, automobile companies and oil and gas sector companies. Ponmudi said the market's near-term sentiment has improved due to the strength of the information technology sector, enthusiasm about Jio's IPO and strengthening rupee. In other markets of Asia, South Korea's Kospi and Japan's Nikkei remained in loss. In China, Shanghai SSE Composite and Hong Kong's Hang Seng also closed with a decline. There was a mixed trend in the major markets of Europe in afternoon trading. US markets closed with a decline on Wednesday. The Sensex fell 251.89 points to close at 72,781.89 points on Wednesday. Nifty was down by 99.25 points at 22,622.70 points.
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