The BSE Sensex rallied over 450 points intraday to trade at 18-month-high, while NSE Nifty crossed the psychological level of 8,900 for the first time since March 5, 2015 on Tuesday. Sensex closed 445.91 points up at 28,978.02, while NSE Nifty settled with gains of 133.35 points at 8,943.
Below are the 5 reasons that are moving the stocks markets today.
1. Domestic stock markets rallied in opening trade taking cues from a firming trend in the global markets after the economic data from US on job creation weakened hopes of an interest rate hike by the Federal Reserve this month. European shares hovered near their 3-month high as commodities-related stocks rallied, though a slump in France’s Ingenico Group led Europe’s tech sector lower.
2. Buying in heavy weight or blue chip counters like Axis Bank, Tata Motors, Infosys, ICICI Bank also contributed to markets rally.
3. Investors also got some support from India’s service industry report that accelerated to its fastest pace in more than 3-1/2 years in August, driven by a surge in domestic and foreign demand. The Nikkei/Markit Services Purchasing Managers’ Index jumped to 54.7 in August, its highest since January 2013, from 51.9 in July.
4. Some support also came with report that foreign institutional investors remained net buyers in equities worth Rs 231 crore on Friday, as per provisional stock exchange data.
5. Indian rupee strengthened against the US dollar and hits its 4 month high on selling of the American currency by exporters and banks amid sustained foreign fund inflows. At 12.23 pm, the local currency was trading 27 paise at 66.55.