InvestorQ : Why did the Sensex rally by 650 points on 10 September and will the rally sustain?
Rutuja Nigam made post

Why did the Sensex rally by 650 points on 10 September and will the rally sustain?

Answer
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2 weeks ago


The Nifty was up by 171 points and the Sensex was up by 646 points in a record rally on Thursday and the volatility in the options market on account of the weekly options expiry hardly had any impact on the markets.

In a way, it was Reliance Industries all the way. The stock crossed the Rs.2350 mark and gained close to 8% in a single day. On Thursday, the market cap of Reliance Industries crossed the $200 billion mark on the back of the rally.

Reliance rallied on Thursday on the back of the sale of stake in Reliance Retail to Silver Lakes. In addition, the market was rife with expectations that Reliance Retail would also sell $20 billion of stake to Amazon, although there were no confirmations.

On the back of the Reliance rally, other oil stocks like BPCL and ONGC also joined the market rally. BPCL was up on the expectation that the divestment at a much higher valuation should happen sooner rather than later.