Stock Market Rally: The Indian stock market is witnessing a boom on the trading day of Tuesday 24th March. The main benchmark index BSE Sensex had jumped 1,000 points in early trade. At the same time, a rise is being seen in Nifty also.
By around 11:50 pm, the Sensex was trading at the level of 73,511, up by 814 points. At the same time, Nifty was also trading at 22,768 points with a rise of 255 points. Amidst global uncertainties, today investors have shown their confidence in the stock market. Let us know what is the reason behind this rise…
Relief to the market from Donald Trump’s soft stance
Amidst the tension in the Middle East, the situation seemed to calm down a bit when US President Trump indicated to postpone possible action on Iran’s energy infrastructure for the time being. He also expressed the possibility of talks.
This statement is expected to reduce tension at the global level. The effect of which has been seen in the market. There was a boom in the American stock market. Investors’ confidence seems to be returning to the market again.
Investor confidence increased due to fall in India VIX
India VIX, an index showing nervousness in the market, fell by more than 4 percent today and reached the level of 25.60. The decline in the index is an indication that nervousness among investors is decreasing and confidence in the market is increasing.
Generally a decrease in VIX is considered a positive sign. Investors start showing their confidence in the market. This is also one of the reasons behind the rise in the stock market today.
Rupee strengthened against dollar
There has been a slight strengthening of the Indian rupee on Tuesday’s trading day. Which has worked to provide support to the market. On March 24, the rupee opened at 93.64 per dollar.
Whereas before this it had reached its lowest level of 93.98. Due to this strengthening of rupee in early trade, there has been a rise in the stock market.
Global signals and buying
Taking advantage of yesterday’s huge fall in the stock market, investors have emphasized on buying today. Due to which the market got support. Asian markets have also witnessed a boom. Also, Brent crude was trading around $100 per barrel. Due to which the market has got support.
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