Sensex jumps over 600 points to cross 81,000: 5 factors behind the rally
Sensex on Thrsday jumped over 600 points and crossed the 81,000 mark for the first time, while Nifty inched closer to Mt 25K by crossing the hurdle at 24,800.
As the buying momentum was led by heavyweight bluechips, small and midcap indices fell around 1% each. The combined market capitalization of all listed stocks on BSE, consequently, fell around Rs 80,000 crore to Rs 454.43 lakh crore.
Most of the gains in headline indices were led by giants TCS, Infosys, RIL, and ICICI Bank.
Here are 5 factors that pushed Sensex, and Nifty higher today:
1) Buying in the old-favourite IT
In recent days, Dalal Street has been renewing its vows for old-favourite software stocks. The Nifty IT index jumped over 2%, with LTIMindtree, TCS, Wipro, Infosys, Coforge, and HCL Tech rallying between 2-4% each.
The results of Infosys today will give greater clarity to the movement in IT stocks.
2) FII buying
After being net buyers to the tune of Rs 26,565 crore in June, FIIs have invested more than Rs 24,000 crore so far in the month.
A survey of Asian fund managers by brokerage BofA shows that the triad of Japan, India, and Taiwan continue to be at the top of investor mindshare, while China and Thailand lag at the bottom from an allocation perspective.
3) Value buying
Amid worries related to valuations in the bull market, which is showing no signs of peaking out, seasoned investors have been cherry-picking stocks that are relatively cheaper and with healthy earnings growth outlooks. On top of this list is mostly bluechips, many of
