Diwali Rally Ignites: Investors Pocket Rs 9 Lakh Crore in Just Three Days

Share market Diwali boom continues: The joy of the festive season has reached the stock market. For the third consecutive trading day, the market celebrated 'Diwali Party,' and the main index of the National Stock Exchange Nifty and the Bombay Stock Exchange Sensex reached the highest level of 52 weeks. According to the data, Nifty rose by more than 631.25 points in three days, while Sensex made a spectacular jump of 2,132.73 points.

Investors have made a profit of about Rs 9 lakh crore during this period. At 12:30 pm on Friday, the Sensex was trading at 84,153.63 with a rise of 692.50 points. In the trading session, it climbed nearly 700 points to reach a 52-week high of 84,172.24. At the same time, Nifty was at 25,775.75 with a gain of 191.05 points and touched a high of 25,781.50 during the session.

Investors' uproar: Market cap increased by Rs 9 lakh crore

Stock market investors benefited hugely from this boom. The market cap of BSE on October 14 was Rs 4,59,67,652.36 crore, which reached Rs 4,68,65,434.88 crore on Friday. That means a jump of Rs 8,97,782.52 crore in three days!

These 8 big reasons behind the market boom 

According to experts, festive demand, a fall in crude oil prices, the strengthening of the rupee, an early trade deal with America, the expectation of an interest rate cut, a rise in Asian markets and a decline in the dollar index gave a boost to the market. Let us know in detail:

• Huge return of foreign investors: FIIs returned to Indian stocks after several months of selling. According to NSDL data, more than Rs 3,000 crore was invested in the secondary market in 5 sessions between October 7 and 14. Investment of Rs 7,600 crore in the primary market, and Rs 68 crore more added as per NSE on October 15.
• US bond yields fell sharply: 2-year yields are at a 3-year low, while 10-year yields are at a 6-month low at 3.95%. This made emerging markets like India attractive and increased FII flows.
• Expectations of the India-US trade deal: Trump said that PM Modi promised to stop buying oil from Russia. On Thursday officials confirmed ongoing discussions on energy cooperation and reducing trade risks.
• IPO pressure is over: Primary market calm after big IPOs like Tata Capital and LG Electronics. No major issues next week, liquidity flowing in the secondary market.
• Wave of short covering: Short positions are being covered due to a surge in frontline shares. Dr. VK Vijayakumar, Chief Strategist, Geojit, said, "The market strength will force the bears to retreat, further covering possible."
• Rupee shines against dollar: The Rupee strengthened at 87.75 due to RBI intervention (better than Thursday's 87.82). Up more than 1% in two sessions. Dollar index headed for its biggest weekly decline in three months.
• Strong buying in bank stocks: The Nifty Bank index rose 0.6% ahead of the results of ICICI Bank (0.6%) and HDFC Bank (0.4%). Vijayakumar said, "Strong results of banks will provide basic support; results of Reliance will give a further boost. Festive atmosphere and Muhurat will increase the trading pace."
• Continuous decline in crude oil prices: Brent at $61/barrel and WTI at $57.37. Supply concerns eased as Trump and Putin discussed ending the Ukraine war. Benefit for India: Trade deficit reduced, inflation under control, and corporate margins improved.

This surge is taking the market to new heights with the festive enthusiasm. Experts advise checking the portfolio before Muhurat trading, but be careful of the risks. The journey to market is still long!