Equity markets in last week took a jump as BSE Sensex surged 747.20 points or 2.83 per cent to 27,144.91 in the past trading session. Likewise, NSE Nifty index rose 239.75 points or 2.96 per cent to 8,328.35 during the week.
Here are the five reasons which supported market sentiments in the past trading sessions
1) The met department reported that rains after an unexpected lean patch bounced back and the rainfall deficit has narrowed to 16 per cent.
2) Markets got a boost after the Union Cabinet approved a long-awaited pay hike for its employees, a move which will increase consumption by putting extra disposable income in the hands of the central government’s 4.7 million employees.
3) Sentiment was also impacted by a global relief rally as the immediate impact of Brexit began to fade.
4) Reserve Bank of India’s (RBI’s) Financial Stability Report (FSR) stated that despite global uncertainties, banking sector issues, the economy stands out in terms of growth as compared to other emerging markets and the Indian financial system remains stable.
5) Markets also cheered Parliamentary Affairs Minister Venkaiah Naidu’s statement that the government will seek to ensure that Goods and Services Tax (GST) Bill will be passed in the upcoming session of Parliament, scheduled from July 18 to August 12.