Stock market shows sharp growth: after Reliance shares, Indigo, HDFC Bank, and Asian Paints rose today

On the fourth trading day, there was a sudden shift in the dynamics of the Sensex and Nifty indices on the stock market. After a slow start to trading, both indices began to rise rapidly. The Sensex index, comprising 30 shares from the Bombay Stock Exchange, jumped by 600 points, while the Nifty of the National Stock Exchange rose by more than 150 points.

This significant growth is linked to events in the US. The stock market opened in the green zone, recovering from the previous day's decline. Although the initial rise was moderate, the situation changed sharply after about an hour, and both indices continued their upward movement at high speed.

The Sensex opened at 73,268, slightly above the previous day's close of 73,246, and then quickly reached 73,862. Similarly, Nifty, starting from a close of 22,690, rose to 22,874.

Among the companies that showed strong growth during this sudden market wave, large corporations were prominent. In the category of large companies on the BSE, stocks such as Adani Ports Share (4.10%), Power Grid Share (4.05%), Kotak Bank Share (3.10%), ITC Share (2.50%), Eternal Share (2.36%), and HUL Share (2.10%), as well as Jio Platforms Share (4.10%), saw gains.

Regarding mid-sized companies, stocks like Apl Apollo Share (3%), Paytm Share (2.90%), and Nykaa Share (2%) demonstrated an increase. Among small companies, growth was noted in Acutaas Share (6.50%), GESHIP Share (5%), Manappuram Share (4.50%), and CUB Share (4.20%).

There are three main reasons explaining this rise in the stock market. One is related to the US. The US Federal Reserve (US FED) announced on Wednesday that it would maintain the current policy rate. Furthermore, there is a decrease in crude oil prices. At the time of writing, the price of Brent Crude fell to $113. Additionally, foreign investor sentiment improved: FPIs made purchases worth about 900 crore rupees in the previous trading day, injecting vitality into the market.

The question of the reasons behind what is happening in the stock market concerns every investor. Following last week's turbulence, both market indices sharply declined at the opening of trading on Monday.

The BSE Sensex index, comprising 30 stocks, crashed by 600 points immediately after opening. Similarly, the NSE Nifty index lost more than 200 points, following the example of the Sensex.

At the start of trading on Monday, the BSE Sensex opened at 72,990, which is below Friday's closing level of 73,123. The rate of decline intensified; in just five minutes of trading, the index dropped by 609 points, reaching 72,514.

The situation with the NSE Nifty index was similar: it opened at 22,524, which is lower than the previous close of 22,600. Its rate of decline also increased, and shortly thereafter, this index of 50 stocks traded at 22,387, showing a drop of 213 points.

Against the backdrop of the significant decline on the first day of the trading week, 26 out of 30 Largecap BSE stocks were trading in the red zone. Among them were declines in stocks such as Asian Paints Share (3%), Bajaj Finance Share (2%), HUL Share (1.80%), and Infosys Share (1.70%).

Furthermore, stocks in the Midcap category, including AU Bank Share (6%), IDFC First Bank Share (2.70%), Sundaram Finance Share (2.20%), and Paytm Share (1.70%), also experienced a fall. In the Smallcap segment, MTAR Tech Share (5%) and Ujjivan Small Finance Bank Share (3.50%) showed a decrease.

Analyzing the causes of the stock market crash, fluctuations in crude oil prices on the international market are primarily cited. Despite a slight decrease in the price of Brent Crude Oil, it is trading around $115, having reached this level after April. This increases inflation risk and worsens sentiment in the stock markets.

Other factors include selling pressure among IT company stocks, which are experiencing a downturn. Moreover, the India VIX index, considered a measure of fear in the stock market, jumped by approximately 6 percent on Monday, reaching 18, which indicates possible instability in the stock market in the coming days.

The trading session on the stock market started splendidly on Wednesday. The Sensex and Nifty indices opened in the green zone and then demonstrated rapid growth. The BSE Sensex index, comprising 30 stocks, jumped by more than 800 points just minutes after opening, while the NSE Nifty also followed suit, rising by approximately 200 points.

This strong growth occurred against the backdrop of the upcoming launch of the country's largest IPO. Jio Platforms, owned by Mukesh Ambani, is preparing for an IPO placement worth over 30,200 crore rupees, which supported the overall market rise, causing a surge in the shares of both Reliance and Jio Financial Services.

At the opening of trading, the BSE Sensex started with a strong jump, reaching 74,337.93 compared to the previous closing level of 73,852.90. Its movement then accelerated, and it traded at 74,668, achieving a gain of over 800 points.

As for the NSE Nifty, its dynamics were similar to the Sensex. This index of 50 stocks opened above 23,000, compared to the previous closing level of 22,888.95, and, following the Sensex, rose by approximately 224 points, trading at 23,120.90.

The shares of Reliance Industries, owned by Mukesh Ambani, played a significant role in supporting this vigorous market growth. Since the Jio Platforms IPO opens to retail investors on Wednesday, Reliance shares have been showing impressive growth even before that. At the time of writing, Reliance shares were trading at 1234 rupees, showing a growth of 2.30 percent. Additionally, Jio Financial Services shares were trading at 216.30 rupees, increasing by more than 1 percent.