Sensex jumps 700 points to conquer Mt 72K. Key factors behind the post-Christmas bash

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Key Points

Nifty, too, hit a fresh all-time peak of 21,654.75 amid all-round buying in banks, auto, metals and IT stocks...

The market rally was broad-based but Nifty's 1% rise left smallcap and midcap indices behind as investors found more value in bluechips after the non-stop rally seen in smaller stocks...

On Tuesday, Wall Street stocks continued their positive momentum, with the Dow and broad-based S&P 500 both rising 0.4%, while the tech-rich Nasdaq Composite Index climbed 0.5%.. 2) Santa Claus rally effectMarkets are known to follow seasonal patterns and Santa Claus rally, which is usually seen in the last five trading days of December and the first two sessions of January, is one such pattern that seems to be playing out in the market now...

Oil prices were stable on Wednesday after the previous day's strong gains as investors monitored Red Sea developments, with some major shippers resuming passage through the area despite continued attacks and broader Middle East tensions.. 5) Banking on banksNifty Bank on Wednesday ended 1.17% higher at 48,282 with analysts eyeing 49,000 level on Thursday..

PNB and Bank of Baroda ended with gains of 3-4%.. 6) Red Sea reliefDespite the attacks by Yemen's Iran-backed Houthi militia, major shipping firms such as Maersk and France's CMA CGM were resuming passage through the Red Sea following the deployment of a multinational task force to the region..

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