Domestic equity markets continued to trade strong on Tuesday with the BSE Sensex surging over 300 points, while NSE Nifty reclaiming 8,700 level.
Domestic equity markets continued to trade strong on Tuesday with the BSE Sensex and NSE Nifty hitting their fresh 52-week-high. Sensex ended 440.35 points up at 28,343.01, while NSE Nifty settled 136.90 points up at 8,744.35.
Below are the 5 reasons why stock markets rallied on Tuesday
1. Stock markets got support from Reserve Bank of India’s report that said the near-term growth outlook for India seems brighter than last fiscal and the economy is likely to expand at 7.6 per cent in 2016-17. It further added that that a better than anticipated agricultural performance and the possibility of allowances under the 7th Pay Commission’s award being paid out in the fourth quarter of 2016-17 provide upsides to this projection.
2. Sustained buying activities by both funds and retail investors supported the market sentiments.
3. Higher global cues also contributed to markets rally with Asian markets trading mostly in green on doubts the Federal Reserve would hike interest rates as soon as September, restraining the dollar, while investors continued to count on more policy stimulus elsewhere in the world.
4. Indian rupee was trading strong against the dollar as the American currency weakened after doubts were raised whether US Federal Reserve chair Janet Yellen will go for a rate hike by September or not.
5. European markets also rose on Tuesday in early deals as investors pared back some of their earlier expectations that the US Federal Reserve could hike interest rates in September. The pan-European STOXX 600 was up 0.3 per cent, having fallen in the previous session.