Nifty hits fresh record high, Sensex up by 1000 points

Published : 01 March 2024

On March 1, benchmark indices Nifty and Sensex rose more than 1.5 percent as investors cherished faster-than-expected domestic economic growth and in-line US inflation figures. The Sensex rose 1,123.55 points, or 1.55%, to 73,624, while the Nifty advanced 336.40 points, or 1.53% to hit a fresh new high at 22,320.20.

Nifty hits fresh record high, Sensex up by 1000 points

1 Better-than-anticipated GDP: The Indian economy expanded by 8.4 percent in the October-December quarter, the strongest rate in six quarters and beyond expectations, boosted by strong manufacturing and construction activity.

Factors causing the rally

2 Optimistic global markets Positive global cues also helped indexes rise. Wall Street stocks finished in the green overnight, with the S&P 500 and Nasdaq Composite finishing at new highs after in-line U.S. inflation data maintained the possibility of a June rate decrease. Japan's Nikkei index rose to a new high, boosted by a rebound on Wall Street. Following manufacturing statistics, China's CSI 300 climbed 0.2%, while Hong Kong's Hang Seng market nudged higher.

Factors causing the rally

3 Positive US inflation statistics The in-line US inflation estimate helped market confidence by keeping the Federal Reserve's rate decrease in June on track. Rate cuts entail greater liquidity in the market, and the prospect of the Fed cutting rates soon has improved investor confidence

Factors causing the rally

4 FIIs in purchasing mode Foreign investors net purchased shares for Rs 3,568 crore in the previous session, while local institutional investors sold shares worth Rs 230 crore. In the previous month, they purchased Indian shares worth Rs 5,107 crore after withdrawing more than Rs 25,000 crore from the domestic market. In the last decade, FIIs have bought domestic equities in March eight times. 

Factors causing the rally

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