A tremendous recovery was seen in the Indian stock market on Wednesday. Driven by global cues, the market made a strong comeback and delivered huge profits to investors. News of a possible peace deal between the US and Iran created a positive atmosphere in the market, due to which the Sensex jumped almost 1,000 points and the Nifty crossed the 24,300-point mark.
At the end of trading, the Sensex closed at 77,958 points, registering a gain of 940 points. At the same time, Nifty also jumped by 298 points and reached the level of 24,330 points. Buying was seen across the board in the market, with around 2,755 shares gaining, while 1,287 shares declined.
Banking shares dominated
Banking sector shares played an important role in the market recovery. Both private bank and public sector undertaking (PSU) bank indices gained between 2% and 3%. The banking sector got a boost after the government approved the credit guarantee scheme for businesses. Automotive, metals, pharmaceutical and realty sectors also gained between 1% and 2%. However, the fast-moving consumer goods (FMCG) and power sectors recorded slight declines, limiting the overall market gains to some extent.
top rising stocks
In the Nifty index, stocks like InterGlobe Aviation, Trent, Tata Motors, Shriram Finance and Asian Paints were among the best performers. In contrast, stocks like ONGC, Reliance Industries, NTPC and L&T declined.
Recovery in mid-cap and small-cap segments also
It was not just large-cap stocks that performed well; Strong buying was also seen in the mid-cap and small-cap segments. Both indexes gained about 2%, indicating strong investor confidence in the broader market.
Other factors promoting market recovery
Hopes for peace between the US and Iran: News of progress in talks between the US and Iran aimed at ending the conflict brought relief to global markets.
Fall in crude oil prices: Brent crude prices have fallen by up to 7%, which has provided relief to oil importing countries like India and also supported the market. What will be the future of the market? Market experts believe that if an agreement is reached between the US and Iran and crude oil prices remain under control, the current bullish trend in the market may continue. However, it will be important to keep a close eye on global developments.