There was a great recovery in the market today. The three-day decline stopped, Nifty closed 285 points higher at 24,765 and Sensex closed 899 points higher at 80,015. Nifty had fallen 1,016 points in the last three sessions. There was also a good recovery in the rupee, which strengthened by 55 paise and closed at 91.60 against the dollar.
Where did this recovery come from?
The main reason for the recovery in the market is the reduction in tension regarding the Iran war. Reports suggest that Iran is ready to give up its nuclear program with certain conditions. Iran said that if it gets a good offer it will give up its nuclear program. Market sentiment has improved due to this news.
Which sector saw growth?
Talking about sectoral performance, all the indices except IT closed in the green. The biggest gains were in metal, realty, consumer durables and auto. The IT index declined by -0.5%.
Today’s Top Gainers and Losers
Of the top 30 Sensex stocks, 20 closed in the green and 10 in the red. Adani Ports, LT, and NTPC were the top gainers today. Adani Ports saw the highest increase of 4.5%. Tech Mahindra, HCL Tech, and TCS witnessed the biggest decline. The biggest decline was seen in Tech Mahindra at -1.3%.
How did the market open this morning?
Nifty closed 135 points higher at 24,615, while Sensex closed 414 points higher at 79,530. A big recovery is being seen in the market right now. Except IT and FMCG indices, all the indices are trading in the green. There has been a significant recovery in the rupee. It opened 57 paise stronger at 91.57 against the dollar.
Where was the initial surge?
In early trade, maximum growth is being seen in Auto, Metal, Pharma, PSU Bank and Realty. These indices are up 1-1.75%. Out of the top 30 Sensex stocks, 20 are trading in green and 10 in red. Reliance Adani Ports, NTPC and Bharat Electronics are the top gainers, rising up to 2%. At the same time, Asian Paints, ICICI Bank and ITC are the top losers, which have fallen by more than half percent.
Nifty is facing resistance in 24600-24800 range.
Devarsh Vakil, head of Prime Research at HDFC Securities, said Iran has shown interest in diplomatic talks, which is a big positive factor. President Trump has talked about keeping the oil market stable. Rupee has strengthened, which is positive for the market. There are signs of rebound in the market. Technically, Nifty is facing resistance in 24600-24800 range.
Nifty fell 385 points on Wednesday
Iran War has depressed global markets including India. Iran hinted at diplomatic talks on Wednesday, which brought some positivity in the global market. Nifty reached an intraday low of 24,305 on Wednesday and finally fell 385 points to close at 24,480.
What is positive for the market today?
Good recovery was seen in the US market, which closed at the highest level of the day.
Domestic funds made big purchases worth ₹12,000 crore yesterday.
Nifty got support yesterday at a big level of 24,300.
Bank Nifty recovered from the closing level of 58,400 on Budget Day.
Gold and silver traded peacefully, indicating reduction in risk.
Indications of increase in flights to some Gulf countries.
What is negative for the market today?
Heavy selling by FIIs at cash and net level.
Rupee closed at record low of 92.15.
Crude oil remains strong near $83.
Sharp attacks continue from both Iran and US. No statement on peace or stopping the war.
VIX rose again by 23% yesterday, which shows volatility.
Despite the market recovery, mid- and small-cap markets remain quite weak.