Sensex jumps over 300 pts: Five key factors driving the rally

Market today seems to have got that adrenaline kick again. At least, the early trend suggests so.Both key stock indices ruled firm. At one point, the BSE Sensex surged over 300 points to 37,489 and the Nifty topped 11,300.What's driving the upmove? Here are the five factors.Rupee takes on more strengthThe rupee remained on the upswing. It firmed another 53 paise to trade at over a two-week high of 71.84 against the US dollar this morning. Increased selling of the American currency by exporters and banks accelerated the climb. Besides, the dollar's weakness against some currencies overseas on easing trade war concerns and a higher opening of the domestic equity market supported the rupee, forex dealers said. On Wednesday, the rupee had gained 61 paise, notching up its best single-day gain since March 2017. Currency market was shut on Thursday for Muharram.India on track to $5 trillion economy: PM Prime Minister Narendra Modi has said his government will continue to take tough decisions and expressed hope that the size of the Indian economy will double to USD 5 trillion in the next 5-7 years. "I want to assure you that in the public interest, we have taken tough decisions and this will continue," he said, adding India's economy is gaining strength despite global challenges.Global leads shineAsian stocks scooped up gains on Friday after Wall Street’s S&P 500 set a new all-time high. There is a realisation that Beijing’s and Washington’s fresh exchange of tariffs may be less damaging than initially feared. The dollar slipped. Japan's Nikkei was at an eight-month high, up 0.5 per cent. MSCI’s Asia-Pacific shares outside Japan rose 0.2 per cent.On Wall Street, the Dow and S&P 500 jumped up to 0.95 per cent, both racing to record. Crude prices fall furtherOil prices eased on Friday after falling in the previous session as US President Donald Trump urged OPEC to lower crude prices ahead of its meeting in Algeria this weekend. Trump said on Twitter “they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices”. "The OPEC monopoly must get prices down now!” Trump tweeted.International benchmark Brent crude for November delivery was down 3 cents at $78.67 a barrel. US West Texas Intermediate crude for October delivery fell 16 cents to $70.16 a barrel.Brent has been flirting with $80 a barrel, backed by concerns of supply shortages from looming US sanctions against Iran, which are set to take effect in November.Govt hikes small savings rateIn a bonanza for small savers, the government has increased interest rates on schemes such as the National Savings Certificate and the Public Provident Fund by up to 40 basis points for the October-December quarter. The decision takes the interest rates on these instruments ahead of those on bank fixed deposits. The rate hike, which carries a sentimental value, is in line with the rising interest rate trend across the economy.

from Economic Times https://ift.tt/2PSuF0A