Yesterday i.e. Monday proved to be a black day for the stock market investors. Yesterday, the Sensex had dropped to about 4000 points at a time in the day. At the same time, there was a huge decline in the Nifty. Donald Trump’s tariff plan (TARRF ‘plan was seen struggling on Monday, including India, on Monday.
But the relief for investors is that on Tuesday, the Indian Stock Market has managed to return with a lead of 1200 points. The Sensex opened with a huge increase at 74,013.73 points. BSE has a 74,421.65 points (up to 10.15 minutes in the morning) with the BSE’s Intra-Day High 1200 speed. But the question in the minds of investors is that this fast is not just a bubble?
The real reason for the boom in the stock market
1- Relief from Trump’s new announcement
The US President has said that many countries are ready to talk on tariffs. Trade war that can reduce stress. Avinash Gorakshakar of Profit Mart Securities says, “Yesterday, President Donald Trump said that many countries including Vietnam are ready to talk on tariffs. This will reduce stress on trade war. Apart from this, the boom in the stock market of Japani stock market and Hong Kong has also affected the domestic markets.”
2- Global market boom
On Monday, there was a hue in the world market. But the day of Magalwar is filling relief. Japan’s Nikki index has been successful in gaining more than 5 percent. At the same time, Hong Kong Seng index gained 1.50 percent in early trade. Other Asian markets have also seen a boom. The return of sharpness in the market has come up.
3- RBI also expects high expectation
Apart from this, experts are hoping that interest rates may be cut in the ongoing bilateral meeting of the Reserve Bank of India. The central bank may reduce the interest rate of 0.25 percent. The RBI is trying to maintain cash in the market. At the same time, due to the tariff announcement of the Trump, the inflation that can be increased.
4- Market on recovery mode after heavy fall
Avinash Gorakshakar says, “Investors had sold heavily on Monday. But now the return of Tejadis is showing a boom in the market. The stock markets are also in a boom due to short covering by investors.”
5- Expect better results from fourth quarter
For Basav Capital, Sandeep Pandey said, “Most of the Indian bank’s fourth quarter business update has been good. Many banks are also trying to raise funds. Which means that there will be a trend of demand and supply for industries in the coming time.”
Note: This is not advisable for investment. The stock market is subject to risks. Be sure to consult experts before any investment.
