It is a big surprise for investors of the Indian stock market with both the indices of the Indian bourses exhibiting the highest figures since July 2011 besides gaining for the eighth consecutive session. While nifty advanced 142 points to 5,578, sensex rose 443 points to close at 18,464.27 (September 14).
Several factors triggered the rise, the immediate effect being generated by the diesel price hike by the UPA government. Another major contributor was the monetary stimulus (new asset purchase program) of the Federal Reserve; its decision to launch a third round of quantitative easing (Q3) not only boosted Indian market sentiments but also worldwide.
Besides, to curb inflation, the Reserve Bank is expected to leave interest rates on hold. Due to deficient monsoon, food prices rose high this year, which further added to the inflation of 7.55 percent in August 2012.
Amongst the biggest gainers in blue chip stocks were Reliance Industries and ICICI Bank.