Sensex jumps 1,000 points as Nifty crosses 23,300 mark
Falling oil prices and strong earnings from heavyweights like Reliance Industries drove a Rs 6 lakh crore increase in market capitalisation.
The Indian stock market rallied on Monday, with the Sensex and Nifty each rising more than 1 per cent, according to a report by Economic Times. The Sensex climbed 1,000 points while the Nifty 50 moved above the 23,300 level on Monday morning.
The surge increased the total market capitalisation of all companies listed on the BSE by over Rs 6 lakh crore in less than an hour of trading, bringing the total to Rs 480 lakh crore. Reliance Industries shares rose more than 5 per cent, while Tata Steel shares increased by 4 per cent.
Several factors contributed to the rally, including a drop in oil prices of more than 3 per cent as Iranian and Qatari officials held discussions regarding a peace deal. Brent crude futures fell to Rs 110 per barrel, and US West Texas Intermediate crude fell to Rs 101 per barrel.
Strong quarterly earnings also supported the market. Reliance Industries reported a 41 per cent year-on-year rise in consolidated net profit to Rs 25,548 crore for the July-September quarter. Jio Platforms also saw its share price rise over 3 per cent after reporting a 14 per cent year-on-year increase in consolidated net profit to Rs 8,389 crore.
Additionally, foreign investors have become net buyers, purchasing shares worth nearly $1.2 billion over the last 10 trading sessions. Market sentiment was further bolstered by expectations of potential government relief regarding long-term capital gains taxes and a decline in bond yields.