Indian stock market witnessed solid buying interest in intraday trade on Friday, December 19, even as the Bank of Japan (BoJ) hiked interest rate and signalled there could be more hikes in the near future. The Sensex jumped nearly 600 points to an intraday high of 85,067, while the Nifty 50 reclaimed 25,979 on the upside. Gains were broad-based as the BSE Midcap and Smallcap indices rose over half a per cent each during the session. Buying across segments lifted the overall market capitalisation of BSE-listed firms to nearly ₹469 lakh crore from ₹466 lakh crore in the previous session, making investors richer by about ₹3 lakh crore in a single session.
Why is the Indian stock market rising?
Let’s take a look at the five key factors behind the rise in the Indian stock market today:
1. Stable Indian rupee
The Indian rupee strengthened during Friday’s session due to some selling of the dollar by traders and importers. However, the domestic currency was trading below the 90 per dollar mark.
“Stabilisation in the Indian rupee seems to have improved sentiment. If the rupee recovers further, it can add to positive market sentiment,” said G Chokkalingam, founder and head of research at Equinomics Research Private Limited.
(This is a developing story. Please check back for fresh updates.)
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