Indian Stock Market Rally Reasons: The Indian domestic market is witnessing a rise for the third consecutive day on Wednesday, March 18. There is a strong rise in the major benchmark indices BSE Sensex and Nifty 50.

At around 12:50 pm, Sensex jumped by about 679 points to the level of 76,750, while Nifty 50 was trading at 23,785 points with a gain of 203 points. Amidst the situation arising in the Middle East, recovery is visible in the Indian market. Let us know, what is the reason behind this rise?

Market got support from buying in IT shares

The IT sector played an important role in this rise in the stock market. Today, investors have bought heavily in these shares which have been falling for the last few days. The effect of this was that the Nifty IT index rose by about 2.5 percent. Besides, the trend of decline which had been going on for 6 consecutive days also stopped.

During this period, shares of many IT companies saw a rise of more than 3 percent. Investors’ confidence has worked to support the market.

Strong signals are coming from global level

Positive signals are being received from global markets including the domestic market. Talking about Asian markets, South Korea’s Kospi index jumped by about 4 percent.

At the same time, Japan’s Nikkei 225 index jumped 2 percent. American markets also closed on a positive note on the last trading day. Overall, the signals coming from the global level have worked to propel the Indian market forward.

Market gained confidence due to fall in India VIX

On Wednesday, the India VIX index, which measures market volatility, fell by about 5 percent to 18.84. This indicates that compared to the past days, investors’ worries have reduced a bit and the atmosphere seems more calm than before.

When the VIX falls like this, it usually means that fear in the market is decreasing and people are becoming more willing to invest.

Crude oil prices are stable

There has been a decline in the prices of crude oil today. The price of Brent crude slipped by about 1.46 percent and reached $ 101.9 per barrel. After this news, the worries of investors reduced and the market got support.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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Sensex Nifty Fall Reasons: There was a decline in the Indian domestic stock market on March 16, the first trading day of the week. Both the major benchmark indices Sensex and Nifty 50 started the day in the red.

During the trading day, the Sensex had slipped nearly 800 points from its day’s high. Nifty had reached around 23,000 points. Let us know what is the reason behind this decline….

Weak signal received from global markets

At the beginning of the week, the trend of Asian stock markets appeared weak. On Monday, South Korea’s Kospi, Japan’s Nikkei 225 and China’s Shanghai SSE Composite Index were seen trading in decline.

Earlier on Friday, American markets had also closed with a decline. Due to signals from global markets, the Indian market also witnessed a decline. Investors did not show confidence in the domestic market.

Crude oil prices are on fire

Due to the ongoing war in the Middle East and the closure of the Strait of Hormuz, about 20 percent of the global oil supply has been affected. Due to which the prices of crude oil are continuously getting support.

Today, a jump of 1 percent was recorded in the prices of crude oil and the new rates reached around $ 104.2 per barrel. This had an impact on oil importing countries like India. Due to which the mood of the market got spoiled.

Foreign investors are continuously maintaining distance

One reason for the weakness in the stock market is the continuous selling by foreign institutional investors. According to the available data of the exchange, on Friday, foreign investors sold shares worth about Rs 10,716.64 crore.

If we talk about the month of March, till now they have withdrawn around Rs 56,883 crore from the market. Due to such huge withdrawals, investor confidence has weakened and the market environment remains under pressure.

pressure on rupee increased

Weakness is also being seen in the Indian currency against the dollar. On Monday, the rupee fell by about 13 paise to reach the level of 92.43 per dollar.

According to market experts, continuous selling by foreign investors and high prices of crude oil are putting pressure on the rupee, due to which the currency remains weak.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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