There was a tremendous rise in global markets on Friday as the fear of recession in America reduced. The effect of this was that a bumper rise was also seen in the local stock markets. Investors earned Rs 7.30 lakh crore on Friday due to the strong rise in the stock markets.
Sensex closed at a two-week high with a jump of 1,331 points while Nifty closed above 24,500 points with a jump of 397 points. This is the best performance of one-day trading in more than two months. During trading, at one time the Sensex had jumped by 1,412.33 points or 1.78 percent and reached 80,518.21 points.
Among Sensex companies, shares of Tech Mahindra, Mahindra & Mahindra, Tata Motors, UltraTech Cement, Tata Consultancy Services, HCL Technologies, ICICI Bank and Tata Steel closed with maximum gains.
Market boom due to these reasons
Vinod Nair, Research Head, Geojit Financial Services, says that the stability of the Japanese Yen has helped strengthen the global market. Apart from this, strong US retail sales and a decline in weekly unemployment claims have helped reduce fears of a recession in America. He said that the decline in US retail inflation has also improved the market sentiment.
Apart from this, due to the news of the slowing inflation rate in America, IT shares have also increased. IT shares have high weightage in both Sensex and Nifty. This is the reason why today there was a sharp rise in both these indexes due to the rise in IT shares. It has also become important from the point of view of the Indian market because the maximum income of Indian IT companies comes from America only.
