Sensex Surging 1,400 Points; Investors Gain Nearly ₹6 Lakh Crore – Key Market Drivers

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Table of Contents

Introduction

On February 4, the Indian stock market experienced a strong rally, with the Sensex surging 1,400 points and the Nifty 50 exceeding 23,750 during intraday trade. Investors saw substantial gains as BSE-listed companies’ market capitalization grew by nearly ₹6 lakh crore. This article explores the main contributors to this rise, overall market performance, and expectations for the near future.

Sensex Surging 1,400 Points: Stock Market Performance

Sensex Surging 1,400 Points: Opened at 77,687.60, peaked at 78,658.59, and closed at 78,583.81.
Nifty 50: Started at 23,509.90, reached 23,762.75, and settled at 23,739.25.
Midcap and Smallcap Indices: BSE Midcap increased 1.35%, while Smallcap gained 1.20%.

Sensex Surging 1,400 Points: Increase in Market Capitalization

Total market capitalization of BSE-listed firms grew from ₹419.5 lakh crore to ₹425 lakh crore.
Investor wealth surged by nearly ₹5.5 lakh crore in one trading session.

Sensex Surging 1,400 Points: Sectoral Performance

Banking Sector: Nifty Bank index increased by 2%.
Oil & Gas Industry: Gains of nearly 3%.
Metals, Pharma, and IT Sectors: Each grew by over 1%.

Sensex Surging 1,400 Points: Key Factors Behind Market Growth

1. Positive Global Market Trends

Strong performance in Asian markets, such as Japan’s Nikkei, Korea’s Kospi, and Hong Kong’s Hang Seng.
Optimism in US stock markets, which uplifted global investor confidence.

2. Easing Trade Tensions

The US government temporarily halted proposed tariffs on Canada and Mexico, reducing global trade uncertainty.
Analysts suggest this move could indicate future trade negotiations with China.

3. RBI’s Monetary Policy Expectations

The upcoming Monetary Policy Committee (MPC) meeting (Feb 5-7) has raised hopes for a 25 basis points rate cut.
Experts predict the repo rate may be reduced to 6.25%, accompanied by possible liquidity-boosting measures.

4. Large-Cap Stock Attractiveness

The Nifty 50 dropped 11% from its peak, offering opportunities for investors looking for well-valued stocks.
Price-to-earnings (PE) and price-to-book (PB) ratios indicate select large-cap stocks may still be undervalued.

5. Technical Market Insights: Key Support at 23,250

The Nifty 50 found crucial support at 23,250, hinting at a potential near-term rally.
Resistance at 23,800, with projections suggesting a possible rise toward 24,050.

FAQs on Sensex Surging 1,400 Points

1. What caused the Sensex to surge by 1,400 points today?

The market rallied due to global optimism, eased trade concerns, expectations of an RBI rate cut, and large-cap stock buying.

2. How much did investors gain from today’s stock market movement?

The total market capitalization increased by ₹6 lakh crore, reflecting investor wealth growth.

3. Which sectors led the market rally?

Sectors with notable gains included banking, oil & gas, metals, pharma, and IT.

4. What are the important technical levels for Nifty 50?

Support: 23,250 | Resistance: 23,800 | Short-term target: 24,050.

5. Will the RBI lower interest rates soon?

Market analysts expect a 25 bps rate cut to 6.25%, potentially stimulating liquidity and further boosting stock prices.

6. How will international markets impact the Indian stock market in the coming days?

If global indices remain strong, the Sensex and Nifty may continue their upward trajectory.

Conclusion

The recent stock market rally has been driven by a combination of strong global cues, favorable trade policy shifts, and growing expectations of monetary easing by the Reserve Bank of India (RBI). Investors have reacted positively to global market trends, with optimism surrounding economic recovery and policy support from central banks.

Technically, the market has found support at 23,250, providing a strong base for further gains. Analysts remain optimistic about the 24,050 level, indicating a bullish outlook for the near term. With improved sentiment, investors are expecting sustained momentum, fueled by anticipated rate cuts and economic stability.

As global markets continue to influence domestic trends, market participants are closely watching upcoming policy announcements and corporate earnings. The combination of supportive fundamentals and technical strength is likely to keep investor confidence high, paving the way for continued market gains.