share market
Tuesday’s huge fall had left stock market investors deeply worried, but Wednesday brought a big relief. The Indian stock market has made a tremendous comeback today and has again brought a smile on the faces of the investors. Due to positive signals from foreign markets and falling crude oil prices, strong buying was seen in both the major indices Sensex and Nifty. The leading stocks of IT and private banking sector took charge of this rise, due to which the market sentiment completely changed.
Great comeback of the market after disappointment
If we look at the data, till 11:55 am on Wednesday, BSE Sensex was trading at the level of 76,948.95 with a big jump of 748.27 points (0.98 percent). At the same time, Nifty of National Stock Exchange also crossed the important level of 24,000 with a gain of 180.60 points (0.76 percent) and reached 24,004.70. Let us remind you that just a day before on Tuesday, Sensex had fallen by 893 points and closed at 76,200, while Nifty had fallen by 278 points. In today’s recovery, except auto, metal and consumer durables sectors, almost all the sectoral indices are trading in the green.
These reasons filled the market with excitement
Not just one but many important factors are working behind this wonderful recovery in the market. Let us understand from where the market is getting this strength.
- Crude oil prices soften: In the international market, Brent crude has fallen by 1.02 percent to $ 76.29 per barrel, which is its lowest level in four months. There are signs of resumption of movement of oil ships stuck in the Gulf due to the Iran war through the Strait of Hormuz. According to VK Vijayakumar, Chief Investment Strategist of Geojit Investments, crude falling below $77 is a big relief for the Indian economy. This has provided stability to the rupee.
- Return of foreign investors: Foreign institutional investors (FIIs), who were continuously selling, bought shares worth Rs 17.86 crore on Tuesday. These figures may be small, but it has given great support to the market mood.
- Expectations of India-US trade deal: The statement of a senior American official has also worked to fill the market with enthusiasm. He has indicated that India and America are very close to a major bilateral trade agreement, which will open new avenues of trade between the Indian market with a population of 1.4 billion and America.
- Strong signals from Asian markets: There was a rise in major Asian markets like South Korea’s Kospi and Hong Kong’s Hang Seng, which directly benefited the domestic equity market.
- Bumper buying in IT shares: Shares of big tech companies gave big support to the market today. The Nifty IT index rose nearly 1 percent, outpacing the overall Nifty’s gain. A spectacular rise of 2.6 percent was recorded in Tech Mahindra, 1.3 percent in Infosys and 0.6 percent in TCS.
- Excellent performance by private banks: There was heavy buying in heavyweight shares like ICICI Bank and HDFC Bank. Due to this, Bank Nifty jumped by more than 1.5 percent.
- Market fear decreasing: ‘India Vix’, which measures market volatility, fell by 2.65 percent to 13.57. This decline clearly shows that the atmosphere of fear among investors has now reduced.
How will the market move in future?
Rajesh Palviya, Head of Research at Axis Direct, believes that as long as Nifty is trading below the level of 23,950, there is a need to exercise some caution in the market. If the market manages to stay firmly above this level, then Nifty can show a relief rally from 24,100 to 24,150. On the downside, there is a strong support at 23,780. If this support breaks, then profit booking can rapidly pull Nifty to the zone of 23,600. He suggests that investors should keep an eye on the ups and downs of global technology stocks for now, because these will decide the direction of the market in the short term.
