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Investors are bombarded with Rs 3.30 lakh crore, these five reasons are the reason behind the market boom.

Sagar Patel

By Sagar Patel

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The stock market has seen a rise for the third consecutive day. Thanks to which Sensex crossed the 80 thousand level for the first time. However, both Sensex and Nifty closed at record levels. In Nifty, a rise of more than 160 points has been observed. If we talk about three days, Sensex has seen a rise of more than 950 points and Nifty has seen a rise of about 276 points. At the same time, investors made a profit of around Rs 6.24 lakh crore. In which Rs 3.30 lakh crore were earned on Wednesday alone.

However, there are many reasons for the stock market to rise. Among them, the rise of foreign markets and the growth of banking and financial stocks are considered. On the other hand, due to expectations of interest rate cuts, the stock market is rising. Let us first look at the stock market data and analyze in detail the reasons why the market rose on Wednesday.

The stock market at an all-time high

On Wednesday, the stock market also closed at an all-time high. The Bombay Stock Exchange’s main index Sensex closed at 79,986.80 with a gain of 545.35 points. During the trading session, Sensex crossed the 80,000-point mark for the first time and touched an all-time high of 80,074.30 points. On the other hand, the National Stock Exchange’s main index Nifty also closed at an all-time high. According to the data, Nifty closed at 24,286.50 points with a gain of 162.65 points. However, during the trading session, Nifty also touched its all-time high of 24,309.15 points. However, it was seen that the Sensex closed at 79,032.73 points on June 28.

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climb for three consecutive days

The stock market has seen a rise for the third consecutive day. This means that the stock market has continued to break records in the month of July. As per the data, Sensex has seen a rise of 1.20 per cent i.e. 954.07 points in these three days. On the other hand, Nifty has seen a rise of 275.9 points in three days. This means that Nifty has made a return of 1.15 per cent in the month of July. If experts are to be believed, further rises in Nifty may be seen in the coming days. However, on June 28, Nifty closed at 24,010.60 points.

Money rains down on investors

Money has also been pouring in for stock market investors in the month of July. Investors’ profits are linked to the market cap of the BSE. On June 28, the market cap of the BSE was Rs 4,39,24,743.63 crore, which has increased to Rs 4,45,49,240.36 crore. This means that in these three days the market cap of the BSE has seen an increase of Rs 6,24,496.73 crore. On the other hand, if we talk about Wednesday alone, the market cap of the BSE has increased by Rs 3,30,361.35 crore. Whereas on July 2, the market cap of the BSE was Rs 4,42,18,879.01 crore.

Impact of the boom on the global market

Due to strong growth in Asian and European markets, the domestic market has also seen an increase. Japan’s Nikkei rose 1.25 percent, while the Hang Seng gained 1.16 percent. In European markets, France’s CAC 40 rose more than 1.5 percent and Germany’s DAX rose more than 1 percent during the session. A major reason for the global market’s rise can be attributed to dovish comments by Federal Reserve Chairman Jerome Powell, which have raised hopes that interest rates will soon be cut. Investors are waiting for the minutes of the Federal Reserve’s final meeting to indicate when the US central bank can begin its rate-cutting cycle.

Rise in banking and financial stocks

Good growth was seen in the stocks of HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and SBI on Wednesday. Due to which both Sensex and Nifty have seen a rise. These stocks have a considerable weighting in the benchmark index of banking stocks. HDFC Bank has led this rally due to a possible increase in its weighting in the MSCI Emerging Markets index. Shares of HDFC Bank have seen a rise of 2 per cent.

Possible impact on Federal Reserve rates

Federal Reserve Chairman Jerome Powell has been making dovish comments in recent days. Expectations have therefore been strengthened that the Fed could start a rate cut cycle at any time. There was no change in US monthly inflation in May. Personal consumption expenditure (PCE), which the Federal Reserve closely monitors to gauge inflation trends, remained unchanged for the first time in six months. However, Powell has not set any time frame for the rate cut. But market experts expect the US central bank to make the first cut in September.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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