A day after suffering strong losses of over 1% each, the headline indices, the Sensex and the Nifty 50, rebounded with healthy gains on Friday, February 20.
In intraday trade, the 30-share pack Sensex jumped over 600 points, while the Nifty 50 reclaimed 25,660 during the session.
The overall market capitalization of BSE-listed firms rose to ₹468 lakh crore from ₹465 lakh crore in the previous session, making investors richer by about ₹3 lakh crore in a single session.
Why is the stock market rising? 5 key factors behind the rally
Experts highlighted the following five key factors behind the market rally today:
1. Short covering in select heavyweights
Experts said market participants are accumulating select heavyweights across sectors, including Reliance Industries, Larsen & Toubro, and Bajaj Finance, as the market’s medium-term outlook remains healthy amid expectations of an earnings recovery and favorable growth-inflation dynamics.
2. Rupee stays below the 91 mark
The Indian rupee declined to 90.96 per dollar mark during the session after crude oil prices surpassed the $72 per barrel mark- a six-and-a-half-month high. However, likely intervention by the Reserve Bank of India (RBI) saved the rupee from falling below the key 91 per dollar mark.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
