Sensex, Nifty: 3 Reasons Why the Stock Market is Rising Today

Sensex and Nifty Show Gains

Sensex and Nifty saw an uptrend today as GDP growth stood at 6.2%, aligning with expectations. February auto sales data was strong, providing market support. Additionally, a decline in Foreign Institutional Investors (FIIs) selling out and a drop in US bond yields strengthened the market.

Sensex and Nifty Performance

• Sensex reached 73,593.26, gaining 395.16 points (0.54%) at closing.
• Nifty traded at 22,243.85, rising by 119.15 points (0.54%).
• Most Asian markets were also trading higher, with Japan’s Nikkei leading with a 1.4% rise.

3 Main Reasons Behind the Stock Market Rally

1. GDP Growth in Line with Expectations

• India’s GDP grew by 6.2% in the December quarter, up from 5.6% in the September quarter.
• HSBC reported that previous GDP figures were revised upward, indicating strong economic growth.

2. Strong Performance in the Automobile Sector

• February auto sales data exceeded expectations.
• Companies like Mahindra & Mahindra (M&M) and Eicher Motors performed well, boosting investor confidence.

3. Decline in Foreign Institutional Investors (FIIs) Selling

• High stock valuations and attractive US bond yields led to recent FII selling in the Indian market.
• However, the US 10-year bond yield has now fallen to 4.21%, which may reduce FII selling.

Long-Term Investment Opportunity in Sensex

V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated,
“The recent correction in Sensex presents a great opportunity for long-term investors to buy high-quality stocks.”

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He also mentioned that while predicting the market bottom is difficult, now is a good time for long-term investors to start investing without worrying about short-term volatility.

• Sensex and Nifty surged due to GDP growth, strong auto sales, and reduced FII selling.
• Current market corrections offer a golden opportunity for investors to buy high-quality stocks.