The BSE Sensex surged over 400 points following positive cues from Asian markets. (Express Photo)
The BSE Sensex surged over 400 points following positive cues from Asian markets. At 11.13 am, Sensex was up 407.32 points at 26,628.27. Similarly, Nifty was up 112.85 points at 8,063.75 during the same time.
Below are the reasons why Sensex rallied over 400 points intraday
1. Indian rupee rose for the fifth day in a row on Monday. It was up by 21 paise against the US dollar at 65.30 in morning deals on persistent selling of the greenback by banks and exporters amid weakness in the American currency overseas and higher domestic equity market.
2. All the Asian markets were trading in the green on the back of expectation that Chinese government is likely to announce a stimulus plan to boost the growth. China’s Shanghai Composite went up by 0.48% while Hang Seng(Hong Kong) rose by 1.84%. The Chinese markets were under selling pressure in the last few sessions especially after the factory data released last week showed manufacturing in China was down to the lowest level in last six and half years.
3. US jobs data that was released on Friday fuelled speculation that the Federal Reserve will not raise key interest rates any time soon, giving a boost to trading sentiments globally.
4. Inflows from foreign investors and across-the-board buying by the investors also helped the market sentiments. The Foreign Portfolio Investors(FPIs) were net buyers on Thursday as they bought shares worth $7.3 million, stock exchange data showed. FPIs have offloaded their holdings heavily from the Indian equity markets during the last two months over the global concerns about China. FPIs sold cash equities worth nearly $3.5 billion since August, Bloomberg data showed.
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