Today, after a long time, a record recovery has been seen in the stock market and the market is very close to reaching its highest level ever. This surge in the local market came after the rise in the global market as expectations of a rate cut by the US Fed strengthened. Sensex closed 1,022 points higher at 85,610, while Nifty closed 320 points higher at 26,205. Nifty Bank rose 707 points. Meanwhile, strong gains were seen across all sectors, including auto, financials, media, metals and consumer. Of the top 30 BSE stocks, 28 rose, while two, Asian Paints and Bharti Airtel, declined. Many stocks including Bajaj Finance, Bajaj Finserv and Tata Steel closed 2% higher. Market capitalization of BSE increased by ₹5.50 lakh crore to ₹474.90 lakh crore. Natco Pharma shares rose 12 percent to ₹932 today. NMDC shares are trading 9.32 percent higher at ₹533. Shares of PG Electropast are trading 6.25 percent higher at ₹605. Reliance Power shares rose 6 percent. MCX shares rose 4 percent to ₹10,255. Siemens shares rose 4 percent to ₹3,313. Why is the stock market so bullish? Rate cut expectations: Given the weak US economic data, the market expects a rate cut from the US Fed in the December policy meeting. According to CME Group’s FedWatch data, 85% of people believe that Jerome Powell and the US Fed will cut interest rates. Global Rally: Tremendous rally seen on Wall Street. MSCI’s broadest index of Asia-Pacific shares rose 1%, while Japan’s Nikkei gained 1.8%. U.S. stock futures were also up 0.2% in early trade. Continued rally in US: US market gained momentum on Tuesday, S&P 500 and Nasdaq Composite rose for the third day in a row. This rally was supported by rising expectations of a Fed rate cut. Crude oil prices fall: Oil prices, trading just above $60, are near a one-month low amid concerns that global oil supplies could grow faster than demand next year. FII purchases: On November 25, FIIs became net buyers and bought shares worth ₹785 crore. Experts expect more purchases in the domestic market. Weak earnings upside: The second quarter earnings season signaled a clear improvement in sentiment, earnings downgrades were reduced, and analysts indicated that the downgrade cycle may have bottomed out. Many brokers now expect a return to double-digit earnings growth after FY27. Broad Buying: Substantial buying was seen in large-cap stocks on Wednesday. Both the mid-cap and small-cap indices rose by more than 1%. RBI MPC meeting: In its last policy meeting of the year on December 3-5, the Reserve Bank of India is expected to cut the repo rate by 25 bps due to several downside surprises in core CPI inflation. Share this story Tags