Sensex zooms 1,200 points, Nifty nears 16,700: Key factors driving the rally

The Indian market started the week on a positive note with Sensex zooming nearly 1,200 points and Nifty adding over 300 points to the Friday close. While Sensex soared 1,198 points intraday to 56,082 , Nifty gained 343 points to an intraday high of 16,695.

Earlier, the market opened higher tracking its Asian peers. Sensex opened 623 points higher at 55,508 and Nifty gained 175 points to 16,527.

In the afternoon session, M&M, Titan and Infosys were the top Sensex gainers, rising up to 5.69 per cent. Top losers were Kotak Bank, Sun Pharma and Dr Reddy's, falling up to 2.12 percent.

Market breadth was positive with 2,366 shares trading higher against 1,040 stocks trading in the red on BSE. Market cap of BSE listed firms rose to Rs 257.91 lakh crore.

Here's a look at factors which pushed the market higher for the third straight session today.

Rally in US market

On Wall Street, the S&P 500 rose 2.5 per cent on Friday to 4,158.24, propelled by gains for tech firms. The Dow Jones Industrial Average rose 1.8 per cent to 33,212.96. The Nasdaq, dominated by tech stocks, gained 3.38 per cent to 12,131.13. The positive sentiment in US market kept bulls in high spirits on Dalal Street today.

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Asian shares follow US peers

The Nikkei 225 in Tokyo surged 2.3 per cent to 27,382.03 and the Hang Seng in Hong Kong gained 1.9% to 21,093.21. The Kospi in South Korea advanced 1.2 per cent to 2,668.31.

China eases Covid lockdown

The Shanghai Composite Index added 0.5 per cent to 3,145.77 as more factories and shops in Beijing and Shanghai were allowed to reopen. Shanghai, China's commercial capital, announced tax breaks and subsidies to help businesses recover from a two-month shutdown.

Early arrival of Monsoon

The southwest monsoon arrived in Kerala on Sunday, three days ahead of schedule, the India Meteorological Department (IMD) said. The early arrival of monsoon will augur well for the economy which is attempting to recover from the Covid-19 led slowdown.

Share Market Live: Sensex zooms 1,000 points, Nifty at 16,650; Nykaa rises 5%

Expert take

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "Market data indicate that the weakness in the US market is coming to an end. The Fed minutes suggest pausing by year end after front- loading rate hikes. Also, there are indications of the US economy slowing down which will enable the Fed to be less hawkish than the market discounted. FPI selling, the main trigger for the market weakness in India, is showing signs of exhaustion. DII and retail buying and overwhelming FPI selling along with short covering can trigger a near-term rally. High quality large-caps can stage a rally. Leading banks are safe bets."