Mumbai, March 8 (IANS). After three consecutive weeks fall, the Indian stock market made a strong comeback and closed with a gain of nearly two percent at the end of the week.
Favorable global and domestic signals improved the market, increasing confidence in investors. The Nifty closed at 22,552.50, while the Sensex closed at 74,332.58, indicating a significant bounce.
Senior Vice President of Railor Broking Limited, Research Ajit Mishra said, “The global sentiment improved following the delay in the US tariff and the possibility of further interaction, which helped to stabilize the financial markets. In addition, the fall in weak dollars and crude oil prices increased investors’ confidence.”
On the domestic front, the decision of the Reserve Bank of India (RBI) to insert additional liquidity in the system increased the positive speed.
Mishra said, “These factors accelerated on a large basis in all areas, with metal, energy and pharmaceutical stocks in the most profit.
Extensive indices also recorded impressive advantage, which increased between 2.6 and 5.5 percent. “
Krishna Appala of Capitalmind Research said that the strength of the market was observed due to recovery on a wide basis, the Nifty became close to the appropriate valuation, while the mid and small-cap saw frequent purchases after recent reforms.
Appala said, “Large cap is seen in good condition, the Nifty 50 is below the P/E20 times, which is in line with the historical criteria. The corporate balance sheet remains strong and 10–12 percent annual income hike is expected to be stable.”
Maintaining this boom depends on earning recovery and broad market spirit.
Experts said that while large caps look in better position, the broad market may be consolidated until income growth increases. The upcoming business week will be small due to holidays, as the market participants will closely monitor global developments in the absence of domestic events.
Experts said that the latest updates on tariff negotiations, geopolitical stress and US dollars and crude oil prices are the main factor to see.
He said that in view of the current scenario, investors are advised to maintain positive but cautious stance.
-IANS
SKT/CBT
