Sensex rose by 900 points as the market showed significant growth against the backdrop of the US Federal Reserve's decision
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Sensex rose by 900 points as the market showed significant growth against the backdrop of the US Federal Reserve's decision

The Indian stock market demonstrated impressive growth on Thursday, driven by the US Federal Reserve's decision to keep interest rates unchanged. The shift in market sentiment led to a significant recovery.

After the close of trading, the Sensex index reached 74,151.04, showing a rise of 1.24% (905.01 points), while the Nifty climbed by 238 points or 1.05%, reaching 22,936.75. Out of the top 30 BSE stocks, only four declined, whereas 26 stocks showed growth.

Adani Port shares recorded the largest increase, rising by 5%. Additionally, Kotak Mahindra Bank shares increased by approximately 4%. Power Grid, Bajaj Finance, and Eternal shares also posted gains of over 3%. Over 2% growth was also registered in SBI, Hindustan Unilever, Titan, and NTPC shares.

Thanks to this growth, investors realized good profits. The market capitalization of BSE increased from 472 billion rupees to 477 billion rupees, representing an increase in investor invested value of 500 million rupees for the day.

The Fed's decision was a key factor: the Federal Reserve did not change interest rates on Wednesday and decided to postpone any changes in borrowing costs until the US elections next week, awaiting further inflation data, which it stated remains high.

Foreign investors also contributed. Interim data indicates that FPIs purchased Indian stocks worth 872 million rupees ($91.58 million USD) in the second consecutive session on Wednesday. Meanwhile, they sold stocks worth $3.74 billion in October. Domestic Institutional Investors (DIIs) also became net buyers, investing 643 million rupees during the session.

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In a week, shares of companies from TCS to Reliance brought investors a profit of 3.65 lakh crore rupees
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In a week, shares of companies from TCS to Reliance brought investors a profit of 3.65 lakh crore rupees

The past week proved to be very successful for investors who invested in the stock market. Both the BSE Sensex and NSE Nifty demonstrated significant growth. Furthermore, nine out of ten companies in the top 10 Sensex provided substantial profits to their shareholders, earning a total of 3.65 lakh crore rupees in just five trading days. Among these companies were both Tata Group's TCS and Mukesh Ambani's Reliance company.

Investors who have long faced significant fluctuations in the stock market received tangible benefits last week. Against the backdrop of overall growth, the Bombay Stock Exchange (BSE) showed an increase in the Sensex index by 2256.94 points, which is 3.11%. At the same time, the National Stock Exchange (NSE) recorded a rise in Nifty by 625.7 points, or 2.77%.

An analysis of the list of the ten most valuable companies in the Sensex revealed that Reliance Industries, Bharti Airtel, HDFC Bank, ICICI Bank, Tata Consultancy Services (TCS), State Bank of India, Bajaj Finance, Life Insurance Corporation of India (LIC), and Infosys benefited their investors. The only company from the top 10 Sensex whose investors incurred losses was Larsen & Toubro.

TCS, belonging to the Tata Group, emerged as the leader in terms of profit volume for its investors. The market capitalization of this company increased to 8,91,134.96 crore, and investors who invested in it over five working days earned 1,08,542.63 crore.

Following TCS, the telecommunications giant Bharti Airtel also showed good results. The company's market capitalization grew to 11,88,815.45 crore rupees, bringing investors 61,406.53 crore rupees. Additionally, the market valuation of Infosys increased from 55,893.05 crore to 4,71,409.41 crore rupees.

As for Mukesh Ambani's Reliance Industries, its market capitalization jumped to 16,37,437.19 crore rupees last week. Investors who bought shares of this company earned 53,047.56 crore rupees in five days. The market capitalization of HDFC Bank was also noted to have grown from 32,379.05 crore to 11,22,628.07 crore rupees, while ICICI Bank increased its capitalization by 30,769.95 crore, reaching 10,02,871.44 crore rupees.

Among other profitable companies is Bajaj Finance. Its market capitalization grew by 14,786.65 crore rupees, reaching 6,11,326.72 crore rupees. As for the country's largest insurance company, LIC, its market capitalization increased from 4,933.5 crore to 5,02,204.82 crore. And the country's largest public bank, SBI, increased its market capitalization from 3,323.07 crore to 8,87,722.84 crore rupees.

Despite the overall boom in the stock market, one company from the top 10 Sensex faced losses. This was Larsen & Toubro, whose market value decreased by 9,232.26 crore rupees in five days, falling to 4,99,725.06 crore rupees.

After a significant jump last week, Reliance Industries' dominance remained unchanged in the list of the country's most expensive companies. Mukesh Ambani's company remained at the top in market value among domestic enterprises. It is followed by Bharti Airtel, HDFC Bank, ICICI Bank, TCS, State Bank of India, Bajaj Finance, LIC, Larsen & Toubro, and Infosys.

Sharp rise in premium on the stock market: an option worth 3 rupees exceeded 115 rupees
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Sharp rise in premium on the stock market: an option worth 3 rupees exceeded 115 rupees

A significant event occurred on the Indian stock market on Thursday: shortly before the close of trading, one of the premium instruments of the Sensex index rose by approximately 35 times. This led to a sharp increase in profits for investors who invested in this option.

The Indian stock market demonstrated impressive growth on Thursday. The Sensex index closed at 74315, showing a rise of 1534 points or 2.11 percent. Simultaneously, Nifty reached the mark of 22,997, increasing by 374 points or 1.66 percent. During this period, strong buying activity was observed in the 74200 Option Call instrument, which suddenly exceeded the mark of 115 rupees.

According to a CNBC report, this call initially cost about 10 rupees, then dropped to 3 rupees, and subsequently surged to 115 rupees. Experts note that such phenomena are rare in the market, but such cases have been observed since the introduction of SEBI's CAS rule.

It is believed that in the last hours of trading, most option premiums are slowing down and beginning to decline. Premiums below 10 rupees are falling particularly fast, and the chances of their recovery are extremely small. Therefore, if any premium instrument demonstrates such a sharp rally at this time, it may indicate the presence of some violations. Similar assumptions are being made regarding this premium instrument.

If someone purchased the 74200 option at a price of about 3 rupees, they could have made a 35-fold profit on each lot. Since one lot in Sensex consists of 20 units, this means that with an investment of 60 rupees per lot, a profit of 2300 rupees could have been made. However, it should be emphasized that this is only an approximate estimate and is not a recommendation to buy such premiums, as such a jump may indicate market irregularities.

A call option within F&O is a contract that allows an investor to bet on an increase in the price of a stock or index without buying them directly. When an investor expects market or stock price growth, they bet on a call option and earn from the increase in premium using margin collateral. Each call option has an expiration date during which the investor can decide whether to purchase it.

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