Stock Market Today: The boom in the stock market is due to these 8 reasons

News Topical, Digital Desk : The Indian stock market made a strong comeback on Friday after three days of decline. In Friday's trading, the stock market witnessed what investors were waiting for for a long time. Nifty rose by more than 300 points i.e. triple century during the session today and closed above the level of 25100 at the end of trading. Amidst the strength in the domestic economy, as soon as there was relief in global signals, the bulls jumped into the market and took the Nifty beyond 25100. However, the big question among investors who have seen the uncertainty of the market is whether this boom will continue.

FII buying
Foreign institutional investors (FII) made purchases worth ₹934 crore and domestic investors (DII) made purchases worth ₹605 crore. This gave a big support to the market.

Rupee strengthened The rupee rose by 13 paise to ₹86.60 against the dollar. The rupee got relief due to the weakness of the dollar and fall in oil prices.

Fall in crude oil prices Brent crude fell 2.45% to $76.92 per barrel. This is a big positive for India because we import most of our oil needs.

Volatility decreased- India VIX index fell by more than 4% to 13.66, which reduced the fear in the market and restored confidence in investors.

Heavy buying in big stocks- The market got support from strength in blue chip stocks like Reliance, HDFC Bank and Bharti Airtel.

Rally of PSU financing companies- Government project finance stocks like IREDA, REC, PFC, HUDCO, IRFC rose sharply. The reason for this was RBI's new guidelines, which provide for less provisioning on project finance.

Relief in geopolitical tensions- The US said that no immediate military action will be taken on the Iran-Israel issue. This brought some relief to global tensions.

Stock market on technical charts- Anand James, Chief Market Strategist, Geojit Financial, told Moneycontrol that there was disparity in the broader market. Only 11% Nifty 500 stocks closed above their 10-day SMA. This indicates that the market may once again see a pullback. He further said that if Nifty falls below 24,690–24,720 zone, there may be a slight decline, but the level of 24,500 will remain a strong support. Overall – the market has made a strong comeback on Friday and Nifty has crossed the historical level of 25,000. The return of foreign investors, strength in global markets and relief in crude oil prices have given new enthusiasm to investors. However, further movement will depend on RBI policies, monsoon conditions and global developments.