The Indian stock market has experienced a significant jump today, with various factors contributing to this upward trend. Here are some of the key reasons:
1) Rally in IT stocks
The Nifty IT index jumped nearly 2%, driven by strong US labour market data. Initial jobless claims in the US dropped by 6,000 to a seasonally adjusted 2,13,000 for the week ending November 16, the lowest in seven months. This indicates that US job growth likely rebounded in November following a slowdown in October due to hurricanes and strikes.
2) Rebound in Adani stocks
Adani Group stocks recovered from early losses and rose up to 6% in midday trade on Friday. Ambuja Cement led the rally with a 6% jump, followed by ACC, which gained nearly 4%.
3) Buying the dip
Today’s rally in the equity markets also comes as investors capitalize on recent declines, with the Nifty index down over 11% from its recent peak. The mid-cap and small-cap indices have also corrected by around 12% and 9%, respectively.
As market sentiment shifts, buyers are seizing the opportunity presented by lower valuations, reflecting confidence in the long-term recovery potential of these segments
4) Global Markets
Indian equity indices surged, following the upward movement in global markets.
5) Rise in PSU bank stocks
Public sector bank stocks also contributed to today’s rally. Heavyweights like State Bank of India, Bank of Baroda, and Punjab National Bank led the recovery as investor confidence returned following Thursday’s sell-off.
The Nifty PSU Bank Index rose nearly 3%, reaching 6,509.2, reversing the losses from the previous session