 "Sensex, Nifty, stock market, BSE, NSE")
Indian stock markets witnessed a strong rally in Thursday's trading session, which happens to be also the last trading session for the week, month and the financial year.
The S&P BSE Sensex rallied nearly 1,200 points as it touched an intra-day high of 74,190. At close, the BSE benchmark quoted around 73,651, up 655 points.
The NSE Nifty 50 rallied past the 22,500-mark to a high of 22,516 in intra-day deals.
In the process, the benchmark indices were up 2 per cent for the month, and having gained as much as 29 per cent in the fiscal year 2023-24.
Back to the day's action, analysts attribute today's rally to the stong domestic inflows coupled with short-covering by foreign investors. DIIs have reportedly net bought stocks worth Rs 24,700 crore in the last seven trading sessions.
Here are the four key reasons for the market rally on Thursday, March 28, 2024:
Large-caps in focus
Large-caps in focus
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes that strong flows are seen towards large-cap stocks. That apart, expectations of lacklustre movement towards end of the fiscal year by broader market proved wrong, thus triggering strong short-covering today.
That apart, given the fears of further regulatory action against SmallCaps following the MF stress test results, which showed that select funds may take up to 30 days to liquidate 25 per cent of the holdings, is kind-off aiding the sentiment at large-cap counters, added Vijayakumar.
In today's trade, HDFC Bank and ICICI Bank have accounted for over 200 points gain on the BSE Sensex. Larsen & Toubro, Infosys and SBI have together contributed another 200 points.
Technical breakout
After 10 trading sessions, the Nifty 50 has bounced back above its 20-DMA (Daily Moving Average), a short-term trend indicator. Further, key momentum oscillators too have shown positive divergence on the daily charts. Thus, suggesting that the short-term bias is likely to remain favourable as long as the index sustains above its 20-DMA at 22,180 levels.
Strong economic growth outlook
Analysts across the globe have been gung-ho on India's economic growth projections, Morgan Stanley on Wednesday revised India's gross domestic product (GDP) growth forecast for the financial year 2024-25 (FY25) to 6.8 per cent, up from the previous estimate of 6.5 per cent. The firm also revised its growth forecast for the ongoing financial year (FY24) to 7.9 per cent.
Countdown to Q4 earnings
The Q4 earnings season shall kick-off in the second week of April. Market participants will soon be seen build positions based on earnings expectations for the quarter.
