Indian stock markets turned around on Thursday after a negative start in the morning session. The markets surged around 1 per cent by mid-session due to a strong domestic structural story and FPI buying.
The Nifty index gained more than 250 points to 23,707.45 or 1.15 per cent up after opening down 35.35 points or 0.15 per cent, while the BSE Sensex also surged more than 950 points to reach 78,007.05 by mid-session, gaining +950.76 or +1.27 per cent.
According to Ajay Bagga, a Banking and Market Expert, India fared well during the sell-off that followed April 2. Because of the domestic structural story and the absence of external sector weakness, the Indian markets have been rising. Due to the strengthening rupee and the optimistic expectation for a robust Indian business sector, FPIs have become net purchasers this week. The domestic consumption story has been reinforced by a monsoon forecast that is normal to above normal. In addition, the RBI’s extensive domestic liquidity injection and monetary easing are improving both the financial situation and the mood of the market.
In the sectoral indices, except Nifty IT, all other sector stocks surged into the green territory. Nifty Banking shares led in gains with the Private Bank index gaining more than 1.3 per cent, while other sectors also showed signs of recovery.
Nifty IT also reduced the gap and was down by 0.95 per cent at the time of filing this report, as in the opening it had declined more than 2 per cent.
“Markets are in rally mode, supported by easing crude, a strengthening rupee, falling inflation, and a promising monsoon,” Vijay Chopra, a market expert, told ANI. Leading the charge are bank equities; high deposit growth, perhaps fueled by six months of market volatility, may be paving the way for great profitability. During the long weekend and Trump’s halt, shorts appear to be stuck.
Wipro, Hero MotoCorp, Tech Mahindra, and Coal India are among the biggest losses in this rebound, while Bharti Airtel, Eternal, ICICI Bank, and Adani Ports are among the top gainers in the Nifty 50 index.
