Sensex Soars 1,200 Points Fueled by Reliance Industries’ Strong Performance
Reliance Industries’ shares surged nearly 12% following the announcement of strong Q2 results, adding a record Rs 1.8 lakh crore to its market capitalization. This surge propelled the Sensex to close 1,233 points higher at 75,693, marking its highest closing in nearly two months. Reliance’s stock alone contributed approximately 750 points to the index’s gain.
Investor Sentiment Boosted by Strong Earnings
The positive momentum on Dalal Street was evident as the Sensex opened over 700 points higher on Monday. The Nifty also saw a significant increase, closing up 388 points at 23,441. Reliance’s 11.6% gain was its largest single-session jump since April 7, 2020, when it announced a stake sale in Jio Platforms to Meta. The day’s increase in Reliance’s market cap set a record for the largest single-session gain for a company, according to data from ET Intelligence.
Market Dynamics and External Factors
Market players noted that the sentiment was further buoyed by news from the markets regulator, Sebi, regarding the potential abolition of long-term capital gains tax for foreign investors. Vinod Nair, head of research at Geojit Investments, indicated that better-than-expected Q2 earnings and improving domestic indicators contributed to the market’s firm opening. Positive macroeconomic signals included growth in October passenger vehicle sales and rising gross GST collections, reflecting robust domestic consumption.
Global factors also played a role, with declining crude oil prices and renewed diplomatic efforts between the US and Iran alleviating concerns over energy costs and geopolitical risks. Foreign funds were net buyers, contributing Rs 3,115 crore to the market, while domestic funds sold off Rs 392 crore. The overall market capitalization of companies listed on the BSE reached Rs 482.3 lakh crore, adding about Rs 8 lakh crore to investors’ wealth. Of the 30 Sensex stocks, 23 closed higher.
