On Wednesday, November 12, the third trading day of the week, the Sensex surged by 750 points, crossing the 84,600 mark. Meanwhile, the Nifty rose by 200 points, reaching 25,900. Today, the biggest buying activity was seen in IT and banking stocks.
Three Reasons Behind the Market Rally
- India-US Trade Deal Hopes: U.S. President Trump announced on November 11 that the U.S. and India are very close to a trade deal. This would strengthen economic and security ties and boost investment, which has increased investor confidence.
- Potential End of U.S. Government Shutdown: The U.S. Senate passed a bill to restore federal funding, paving the way for the end of the longest government shutdown in U.S. history. This will provide clarity on delayed economic data (like non-farm payrolls) and guide the Federal Reserve’s policy direction.
- Expectation of Interest Rate Cuts: There is speculation that the Federal Reserve may implement another rate cut in December. Fed Governor Stephen Moran stated that a 50 basis point cut could be on the table, as inflation is easing and unemployment is gradually rising.
Mixed Performance in Global Markets
- Asian Markets: Japan’s Nikkei Index fell by 0.34%, reaching 50,667, while South Korea’s Kospi rose by 0.81%, reaching 4,139.
- Hong Kong’s Hang Seng Index rose by 0.63%, reaching 26,865, while China’s Shanghai Composite dropped by 0.23%, to 3,993.
- U.S. Markets on November 11: Dow Jones rose by 1.18%, closing at 47,927, while Nasdaq Composite dropped by 0.25%. The S&P 500 gained 0.21%.
Sensex Closed 336 Points Higher on Tuesday
On the second trading day of the week, Tuesday, November 11, the Sensex rose by 336 points, closing at 83,871. The Nifty also gained 121 points, ending at 25,695.
During the session, the market saw a decline, but later, the Sensex recovered 600 points from its intraday low, and the Nifty recovered 200 points. Out of the 30 stocks in the Sensex, 24 ended higher.
