The Indian stock market witnessed a rise for the fifth consecutive day on March 21. The Sensex was seen trading 693.16 points higher and the Nifty 212.05 points higher. The main reasons behind this rise were a strong rupee, recovery in IT stocks and buying by foreign investors.
The phase of tremendous growth continues in the Indian stock market. On March 21, Sensex and Nifty are seen closing with gains for the fifth consecutive day. There are mainly three reasons behind this surge, which mainly include strong rupee, recovery in IT stocks and buying by foreign investors.
At the time of writing the report, the Sensex rose 693.16 points (0.90%) to 77,041.22, while the Nifty rose 212.05 points (0.91%) to 23,402.70. A total of 2561 stocks in the market saw a rise, 931 declined and 113 stocks remained unchanged.
Major reasons for the rise in the stock market
1) Strength of rupee
The Indian rupee strengthened by 14 paise on March 21, due to which the buying of foreign investors increased. The reason for the strength of the rupee was the fall in the “Real Effective Exchange Rate” (REER) and strong foreign fund flow. The Indian rupee opened at 86.2287 and was trading at 86.2337, better than its previous close of 86.3675. This is the rupee’s best weekly performance in the last 2 years.
2) Buying by foreign investors
Foreign portfolio investors (FPIs) who were selling in the Indian market for the last few months have started buying again in recent days. On March 20, foreign institutional investors (FIIs/FPIs) bought shares worth Rs 3,239.14 crore, while domestic institutional investors (DIIs) sold shares worth Rs 3,136.02 crore. According to market experts, this buying by foreign investors played a big role in lifting the market.
3) Value Buying
In the last few days, many big stocks became available at attractive prices, due to which investors increased their buying. According to Shrikant Chauhan, Head of Equity Research, Kotak Securities, currently the market is witnessing a “relief or pull-back rally”, due to which Nifty can reach the level of 23,300-23,500. The current value of big stocks is attracting investors and due to this the market remains strong.
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