Stock market today: Sensex, Nifty 50 gain nearly 1% at open: 5 key reasons behind the market rally
Also Read: India overtakes Hong Kong as world’s fourth-largest stock market by market capitalisation However, he advises investors to remember that sentimental impact cannot last long. “Tensions in West Asia and the Red Sea are areas of serious concern. If something goes wrong, the market will be impacted since valuations are high.
Therefore, even when optimistic, investors should be cautious," he added. Here are 5 key factors behind the stock market rally: Positive trends in the global markets supported the domestic equities. Asian markets traded higher on Tuesday, while the US stock market ended with gains overnight led by technology stocks.
The S&P 500 posted a second straight record high close, while the Dow Jones Industrial Average finished above the 38,000 milestone for the first time in history as the fourth-quarter earnings season ramps up. Japanese shares surged to fresh 34-year highs after the Bank of Japan (BoJ) stood pat on ultra-loose monetary policy. Japan’s Nikkei rose 1% to the highest level since February 1990, bringing year-to-date gains to 10.3%, Reuters reported.
The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5%, driven by a 1.8% jump in Hong Kong’s Hang Seng index that surged more than 3% after two straight days of declines. Chinese stock market rallied after Bloomberg news reported that the state authorities were considering a package of measures to stabilize a slumping stock market. Chinese policymakers are seeking to mobilise about 2 trillion yuan ($278.53 billion), mainly from the offshore accounts of Chinese state-owned enterprises, as part of a stabilisation fund to buy shares onshore through the Hong Kong exchange link, Bloomberg News reported.
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