Why is Sensex Rising Today? The domestic market on Monday closed on a strong note aided by an upbeat in US tech quarter earnings and a drop in US 10-year yield, with the BSE Sensex shooting up by 940 and the NSE Nifty rising over 220 points. All shares of Sensex, except Bajaj Finserv, Wipro, ITC and HCL Tech, closed in the positive zone.
The BSE benchmark index Sensex on Monday saw a consistent rise throughout the trading session, except initial hiccups, and finally jumped 941.12 points or 1.28 per cent to close at 74,671.28. The NSE Nifty also followed the suit and ended the day 223.45 points higher at 22,643.40.
The biggest gainers on the Sensex were ICICI Bank, SBI, IndusInd Bank, UltraTech Cement, and Axis Bank rising up to 4.67 per cent. However, the biggest loser was HCL Tech (down 5.79 per cent), followed by ITC, Wipro and Bajaj Finserv.
In the morning trade, the BSE benchmark Sensex on Monday was trading 436 points higher at 74,166.33, while the Nifty was over 93.7 points at 22,513.70.
Meanwhile, in the previous trade on April 26, Sensex and Nifty wilted under selling pressure after a five-day rally. The 30-share BSE Sensex tanked 609.28 points or 0.82 per cent to settle at 73,730.16. During the day, it lost 722.79 points or 0.97 per cent to 73,616.65. The NSE Nifty declined 150.40 points or 0.67 per cent to 22,419.95.
Why Is Sensex Rising Today?
Vinod Nair, head of research at Geojit Financial Services, said, “The Indian benchmark indexes rebounded, aided by an upbeat in US tech quarter earnings and a drop in US 10-year yield. Domestically, the Bank Nifty outperformed, driven by its strong performance in the fourth quarter.”
He added that an ease in the Middle East tensions, coupled with stable earnings, is expected to maintain positive market sentiment. Moving forward, US Fed policy and US non-farm payroll data will dictate the overall market dynamics.
Rupak De, senior technical analyst at LKP Securities, said, “The Nifty continued to remain in the uptrend as the index closed with solid gains. The index maintained its position above the critical 21EMA, signaling a continuation of the bullish trend. The momentum indicator, RSI (14), shows a bullish crossover. It is projected to move towards 22800-22850 in the short term, with support at 22550.”
On Bank Nifty, Rupak De said the bulls have pushed the index above the previous swing high, signaling a strengthening bullish trend. Additionally, the index has moved beyond the recent consolidation phase.
“The RSI (14) indicator is in a bullish crossover and is rising. Overall sentiment is expected to remain positive in the short term. Higher gains are anticipated towards 49800-50000, with support at 49000,” he added.
The Indian Rupee Today
The rupee on Monday experienced a decline of 12 paise to 83.47 to a dollar..
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “The rupee experienced a decline of 0.12rs, trading at 83.47. The onset of election voting has contributed to the rupee’s weakness, despite RBI intervention efforts. With elections underway, rupee volatility is expected to persist.”
He added that looking ahead, significant events this week include the US interest rate decision on Wednesday night and the US Non-Farm Payroll and Unemployment data on Friday evening. These events are likely to provide fresh triggers for both the dollar index and the rupee.
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