- Summary:
- The BSE Sensex index closed 612 points (0.75%) higher at 81,698.11. The rally was driven by the gains made by 21 of the 30 BSE Sensex stocks.
The BSE Sensex index closed 612 points (0.75%) higher at 81,698.11. The move higher was driven by the 21 out of the 30 BSE Sensex stocks that had gains. Some companies that recorded the highest gains were NTPC and HCL Tech, while the stocks with the biggest losses were Adani Ports SEZ, Maruti Suzuki, and others.
Some analysts said that the gains made by the Sensex today were driven by the positive earnings reported by most companies in the index. Analysts also noted that foreign institutional investors had turned into net buyers, buying stocks worth 486.36 crore, while domestic institutional investors bought shares worth 1,870.22 crore.
Sensex benefits from risk-on market sentiment
The Sensex profited from a world wide risk-on market sentiment that has led to a rally across many stock markets. The risk-on mood was primarily driven by the expectations of investors about possible the interest rate cuts by the US Federal Reserve in September. Global stocks have risen ever since Jerome Powell’s speech at Jackson Hole on Friday.
Indian rupee to miss out on global EM currencies rally
Some analysts predict that although Indian stocks are moving higher, the Indian rupee may not benefit from the expected rally in emerging market currencies. The rupee is overvalued, so other emerging market currencies will likely catch up to it.