Sensex jumps over 750 points, Nifty tops 22,050; Rs 5.8L cr added to investors' kitty: Key factors behind today's surge

Equity benchmarks rose sharply in late morning deals on Thursday on positive global cues. The surge in domestic indices was supported by strong gains in metal and state-owned lenders. The 30-share BSE Sensex pack surged 751 points or 1.04 per cent to trade at 72,852, while the broader NSE Nifty index moved 235 points or 1.08 per cent to hit 22,074. Buying interest in select frontline stocks such as HDFC Bank, Reliance Industries, Larsen & Toubro, SBI, Tata Steel and Tata Motors lifted the indices higher.

Broader markets (mid- and small-cap shares) also staged a strong rebound with small-cap index rising 2.36 per cent. India VIX, fear index, dived 5.64 per cent to 12.71-level.

Such was the rise in the domestic bourses that over Rs 5.8 lakh crore of BSE market capitalisation (m-cap) was generated. Investor wealth, as suggested by the BSE m-cap, surged Rs 5.84 lakh crore to Rs 379.97 lakh crore compared with a valuation of Rs 374.12 lakh crore recorded in the previous session.

Here are the key reasons behind the stock market rise:

Metal & PSU stocks shine

All the 15 sector gauges -- compiled by the NSE -- were trading in the green today. Sub-indexes Nifty Metal and Nifty PSU Bank were outperforming the NSE platform by gaining 2.39 per cent and 2.50 per cent, respectively.

Global cues

Asian shares were up today tracking an overnight rise in Wall Street equities. US stocks advanced after the Federal Reserve kept rates unchanged as expected, and added the US central bank stayed on track for three interest rate cuts this year.

Fed Chair Jerome Powell said that recent hot inflation readings had not changed the underlying story of slowly easing price pressures and reiterated the central bank's earlier forecast of soft landing for the world's largest economy.

Nifty outlook

"For Nifty, the bias is maintained with a cautious approach and would need to close above the 22,000 zone to establish some conviction. Support for the day is seen at 21,900 level while the resistance would be seen at 22,100," Prabhudas Lilladher stated.