New Delhi, India – Nifty 50 don hit fresh 52-week high wey pass 25,700 mark for Friday! E be like say plenty foreign money dey come as market dey jolly for Diwali. E don climb 2.2% over the last three days, as all the stars align for investors to smile like say dem don chop belle full.
But no too dey carry your chest go high! Even with this sweet move, Nifty still dey about 570 points, or 2%, below im all-time high wey be 26,277, wey dem reach for September 27, 2024. Wetin we fit carry enter this euphoria? Make we check the eight key factors wey dey drive this rally.
First one be say after plenty months of dem no dey buy, the foreign institutional investors (FIIs) don turn around come dey buy again. From October 7 to 14, dem buy more than ₹3,000 crore worth of stocks for the market! Na wa! Just make we no hear say dem go run away again like last month!
Next, US treasury yield don drop sharply, and dat one dey give emerging markets like India fresh dance steps. The two-year yield don reach three-year low level, while the 10-year yield don drop to six-month low of 3.95%. E mean say foreign capital fit come flow for our markets. Better time for investors to smile!
And abeg no forget say US President Donald Trump don drop some sweet talks about India and US trade cooperation, plus him mention say PM Narendra Modi don gree to stop buying Russian oil. Now, dat one dey reduce wahala for trade between US and India. Chai!
Another gist wey dey trend be say the primary market don cool down small after last week’s hot IPOs from Tata Capital and LG Electronics India. With no major new issues, liquidity don free up, make money fit flow for secondary market buy without wahala.
Furthermore, we dey see plenty short covering for frontline stocks wey dey fuel the rally. Dr. V.K. Vijayakumar, Chief Investment Strategist for Geojit Financial Services, talk say market dey strong and resilient, and all this bearish games don push another bull run.
Let’s turn our eyes to the rupee. E don get strong to 87.75 against the dollar, thanks to the Reserve Bank of India wey dey manage the dollar sales. Traders dey say RBI strategies don squeeze speculative long-dollar bets, and as dollar index dey weak, our naira dey catch some strength too.
Financials nah the star boys wey lead this uptrend. ICICI Bank don increase by 0.6%, and HDFC Bank follow suit wey dey rise by 0.4%. Both banks dey prepare their financial results, and strong numbers from them fit carry this rally go far!
Crude prices don continue to fall, as Brent dey trade near $61 per barrel, and WTI dey around $57.4. Reports dey fly say US and Russian leaders fit meet for Hungary to discuss ending the Ukraine war, which go ease supply concerns. Lower oil prices dey help India manage trade deficit, ease inflation, and improve corporate margins.
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