Stock market today: Extending gains to the third consecutive session, Indian stock market benchmarks- the Sensex and the Nifty 50- clocked healthy gains in intraday trade on Friday, October 17, despite weak global cues.
The Sensex jumped over 600 points, or 0.75 per cent, to an intraday high of 84,108, while the Nifty 50 reclaimed the 25,760 level, rising 0.70 per cent. However, broader markets were lacklustre on concerns over stretched valuations.
In these three sessions, the Sensex has risen by over 2,000 points, or 2.5 per cent, while the Nifty 50, too, has jumped 2.4 per cent.
Why is the Indian stock market rising?
Let’s take a look at five factors that are driving the Indian stock market higher:
1. Short covering in select heavyweights
Experts say investors appear to be covering their shorts in select heavyweights, including Bharti Airtel, HDFC Bank, Reliance Industries and ICICI Bank, which is keeping the benchmarks up.
Meanwhile, following the recent correction, the valuation of the Nifty 50 has become rational, triggering buying interest in select large caps.
“The market is resilient and technically strong. Price action in the leading stocks indicates short covering. Even now, there are big shorts in the system, and the strength in the market might keep the bears on the back foot, facilitating further short covering,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments, observed.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
