Sensex Surges Amid Global Rally: 10 Developments

BSE Sensex and Nifty were sharply higher on Wednesday, boosted by a rally in global markets. The Sensex gained as much as 436 points while Nifty regained the psychologically important 7,800 levels. The rupee also gained today, lifting the sentiment in domestic stock markets. Here is a 10-Point Cheat-Sheet: 1) Despite the rebound in Indian markets for second consecutive day, analysts remain skeptical about the sustainability of gains. They say that global markets, including India, were in an oversold territory which helped to spur a relief rally. 2) Analysts also remain worried about the relentless selling from foreign investors in Indian stock markets. Foreign investors sold a record Rs 16,877 crore worth of domestic stocks in August. On top of that, they sold Indian stocks worth nearly Rs 5,500 crore in the past six sessions. 3) Domestic institutional investors have been buyers of stocks despite the selloff from foreign investors, helping to provide some support to Indian markets. On Tuesday, they bought shares worth nearly Rs 450 crore. Since August 24, domestic institutional investors bought shares worth Rs 16,327 crore while foreign investors sold equities worth Rs 17,653 crore. 4) The gains were broad-based today with all the sectoral indices on the BSE trading in the green. IT, metal, auto and realty stocks outperformed today. The breadth of the market also remained strong with BSE midcap and smallcap indices up nearly 1.7 per cent. 5) Indian markets are likely to remain volatile till the crucial US Fed meet, which is scheduled for September 16-17, say analysts. An interest rate hike in the US could accelerate the selling from foreign investors who would like to park their money in US bonds. Besides, a rate hike in the US would strengthen the dollar, putting further pressure on rupee. 6) Traders are also watching the value of the rupee which affects the dollar returns of foreign investors. The rupee traded higher at 66.33/dollar against yesterday's close of 66.54. 7) Asian markets, including China, were sharply higher with Japan's Nikkei surging nearly 6 per cent. China's benchmark indices gained nearly 2 per cent. 8) US stocks rose more than 2 per cent overnight amid a China-fuelled rebound in global equities. Hopes for more stimulus measures from the Chinese government increased after data on Tuesday showed that China's imports shrank far more than expected in August, falling for the 10th straight month. 9) China also said it would remove a tax on dividend incomes for investors who hold stocks for more than a year in an effort to encourage longer-term investment. 10) Data showing Germany saw imports and exports hit record highs in value terms in July also helped the global rally in equities.

Sensex Surges Amid Global Rally: 10 Developments

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