Key factors behind the rally
1. Strong cues from US markets
Wall street closed higher overnight ahead of key inflation data due this week
Asian shares were mixed on Thursday. Hong Kong’s Hang Seng index gained 1.45%, while the Shanghai Composite advanced 0.9%. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.6%. In Tokyo, the Nikkei 225 lost 1.6% to 40,151.
2. Gains in bank & financials
Financials rose after RBI relaxed norms brought in December, which mandated lenders should set aside higher provisions if they bought into alternative investment funds, that, in turn, invested in the lenders’ borrowers.
Bajaj Finance and Bajaj Finserv rose about 4 and 3% respectively each after news reports said Bajaj Housing Finance could be in talks for an IPO
ICICI Bank and SBI were among the top ten gainers on Nifty
3. Solid FII inflows
FIIs bought Indian shares worth Rs 2,170 crore on a net basis on Wednesday and that also boosted the sentiment in the markets
4. Technical indicators
Indicators say as long as nifty holds above the 21,711 level, it will stay bullish.
