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Stock Market Closing: The stock market closed on the weekend with a strong gain for the third consecutive trading session. The Sensex rose 1618.85 points to close at a high of 76693.36. The Nifty also closed 468.75 points higher at 23290.15.
Investors' capital increased by Rs 7.45 lakh crore today. In the last three trading sessions, investors' capital has increased by a total of Rs 28.57 lakh crore. Today 190 stocks recorded their highest level of the year and 35 stocks recorded their lowest level of the year. In an overall bullish environment, indices including auto, consumer durables, healthcare have recorded all-time highs.
Reasons for the rise in the stock market
1. RBI raised growth forecast
The monetary policy committee of RBI today did not change the repo rate for the eighth consecutive time. Also, the GDP growth forecast for the current financial year has been raised from 7 percent to 7.2 percent. The hope of growth in rural and urban consumption, increase in PMI in services, along with signs of normal monsoon, has made the market sentiment positive.
2. Political stability and policy continuity likely
The BJP-backed NDA is all set to form the new government. The news of a stable government under the leadership of Narendra Modi has led to a boom in the market. Narendra Modi will take oath as Prime Minister for the third time on June 9. All the parties of the NDA are supporting the government schemes and policies which is an indicator of continuity.
3. US dollar falls
The US dollar closed at an eight-week low on Friday. The US dollar index fell to 104.13 ahead of the release of US jobs data. Which is close to the weekly low of 103.99. The possibility of interest rate cuts by the Fed Reserve in September may accelerate foreign investment. Factors have stabilized globally. The geopolitical crisis has subsided. The European Central Bank has cut interest rates. All these signals create positive momentum for the market.
