InvestorQ : What was the reason for the 1000 point rally in the Sensex on 27 May?
Arya Nanda made post

What was the reason for the 1000 point rally in the Sensex on 27 May?

Answer
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diksha shah answered.
5 months ago


Sensex gained by a whopping 996 points on Wednesday and was largely driven by banks and financials. The first trigger for the rally came after reports of Carlyle PE Fund taking a $1 billion stake in Axis Bank. Though the bank has denied it, it surely changed sentiments surrounding banks. Banks also benefited from the expectation that the lifting of the lockdown should result in better credit off-take and thus help to reduce the gross NPAs as industry gets back into action. However, banks were largely oversold. With F&O expiry slated for 28 May, traders did not want to be caught on the short side of financials. Most private banks rallied on Wednesday but may not have much more steam left.