Stock market today: The Indian stock market has been witnessing healthy gains since last Wednesday, with the benchmarks Sensex rising by over 1,500 points and the Nifty 50 reclaiming the psychologically significant 25,000 mark in three sessions.
On Monday, October 6, extending gains to the third consecutive session, the Sensex rose over 600 points, or nearly 1 per cent, to an intraday high of 81,846, while the Nifty 50 also rose by almost a per cent to an intraday high of 25,088.
The BSE Midcap index inched by nearly half a per cent, but the Smallcap index bucked the trend and declined by 0.30 per cent during the session.
Why is the Indian stock market rising?
Experts highlight the following five factors behind the rise in the domestic market benchmarks:
1. Short covering at play
Experts highlighted that the domestic market is witnessing short covering in quality stocks after the recent correction, which is driving the benchmarks higher.
IT stocks, which suffered significant losses in the recent past due to concerns over the H-1B visa fee hike and other sectoral headwinds, saw healthy gains on Monday. The Nifty IT index jumped over 2 per cent in intraday trade on Monday, rising for the third consecutive session.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.