The Sensex surged 1.52% or 836 points to 55720, mirroring advances in Asian shares after China relaxed Covid restrictions. The Nifty gained 1.6% or 260 points to 16611.

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Investors were encouraged by China’s relaxation of trade restrictions and the US Federal Reserve’s minutes from its early May meeting, which were posted on Wednesday, fueling speculation of a possible pause in interest rate rises later this year after more monetary measures in June and July, according to analysts.

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The following are the reasons behind the market’s rise:

China relaxed Covid curbs in Shanghai and Beijing and issued a series of economic assistance measures, sending Asian shares higher. Shanghai will relax Covid test rules for anyone entering public venues, while Beijing will relax mobility restrictions in many districts beginning Sunday after officials declared the outbreak under control. The Nikkei climbed 2%, the Hang Seng gained 1.9%, the CSI 300 gained 0.5%, and the Taiwan and Kospi gained 1.7% and 1.4%, respectively.

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The minutes of the Federal Reserve’s most recent monetary policy meeting revealed that officials uniformly believed the US economy was quite robust, even as they battled inflation without causing a recession. The minutes also revealed that the majority of committee members thought further rate rises would be “likely appropriate” at the future June and July meetings.

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After a devastating heat wave crippled winter-sown wheat and forced the country to restrict exports, the monsoon came sooner than normal in India, sparking optimism that the output of crops such as rice and oilseeds may surge.

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Investors are also looking forward to the release of GDP statistics for the March quarter, which is scheduled for May 31. Analysts predict a wide range of quarterly growth rates ranging from 2.7% to 4.5%. The State Bank of India anticipates 2.7% growth for the quarter while rating agencies ICRA and CRISIL anticipate 3.5% and 4.5% growth, respectively.