The stock market has already celebrated Diwali before. Sensex and Nifty reached all-time high and Sensex crossed 43 thousand levels on Tuesday. This height of the stock market in the midst of the Corona crisis surprises. Joe Biden’s victory in the US is one of the reasons for the rise in the stock markets, but many more factors are responsible for this, which were supporting the market for the last few days. Let’s know what are the five big reasons due to which the market has reached such a high.
1. Good International Signs
Joe Biden’s victory in the US presidential election has been welcomed by the stock markets around the world. The Asia-Pacific markets of Japan, South Korea, Australia, and Hong Kong saw good growth. Businessmen feel that now there will be more relief package in America and there will be a change in the rules. Investor sentiment has also been strengthened due to weakness in the dollar and good investment in the stock market by foreign funds.
Indian investors feel that now India’s relations with the US will improve during Biden’s tenure as the two countries would like to face China’s growing stronger together. One of the reasons for the rise in IT shares is the victory of Joe Biden in the US because the sector feels that now H-1 visa rules will be softened in America.
2. Positive economic signals in the country
After a long time in the Covid period, many strong economic signals are being received continuously in the country and the world. In the US, 6.38 lakh new jobs have been received in the month of October and the unemployment rate has come down to 6.9 percent. Many better figures like manufacturing PMI, e-way bill, GST collection have come in India.
3. Second quarter results
Banking shares have seen good growth. Bank Nifty, IT, and metal stocks have seen a boom. Recently, ICICI Bank, SBI, and Axis Bank’s September quarter results have been seen better. Similarly, the results of the Divis Lab in Pharma have been very good.
4. Good investment of FII
Sentiment has also improved due to good investment by foreign institutional investors (FII) in the Indian stock market. In the first five trading sessions of November, foreign portfolio investors have invested Rs 8,381 crore in the Indian market, while in October, foreign investors had netted Rs 22,033 crore from the Indian markets.
5. Technical Outlook
The pace on Dalal Street, ie, the bets are dominating the pace, due to which the Nifty 50 has remained in the green mark continuously. Market experts say that after crossing the 11,900 barriers, there was no way for Nifty to return. If the Nifty crosses the weekly resistance level of 12,500, then it can be expected to go up to 12,650 again. The Nifty also reached a height of 12,598 on Tuesday.