News Topical, Digital Desk : After three consecutive days of decline, the Indian stock market witnessed a strong recovery on Thursday. The Sensex traded with a gain of nearly 450 points, while the Nifty reached around 24,650. Strength in Asian markets, value buying, and some relief regarding inflation and crude oil prices boosted investor confidence. Significantly, buying was seen across almost all sectors, with mid-cap and small-cap stocks also registering strong gains.
After facing a sell-off for three consecutive trading sessions, the Indian stock market saw a respite on Thursday. The Sensex rose nearly 472 points to 79,588.49 in morning trade, while the Nifty gained 165 points to trade at 24,645.80. This rally in the market ended a three-day losing streak. The market sentiment appeared quite positive in early trading. According to data, approximately 2,324 stocks were trading higher, 968 were trading lower, and 136 were trading unchanged. Most importantly, all 16 major sectors registered gains as soon as the market opened. Furthermore, mid-cap and small-cap stocks saw gains of approximately 1%, further strengthening investor confidence.
1. Value Buying Effect:
After three consecutive days of decline, many stocks had reached bargain prices. Consequently, investors began buying at these levels. Particularly, stocks in the real estate, metal, and auto sectors saw significant buying.
Market experts say that in a war-like situation, sudden news, such as attacks on oil installations or supply disruptions, can impact the market. However, if crude oil trading remains normal for a few days, investor confidence returns, and the market begins to recover. 2. Support from Global Markets: Asian markets also showed positive signs on Thursday. South Korea's Kospi index jumped more than 9%, while the Hang Seng and SSE Composite indexes also traded strongly. This rally was driven by news that Iran had indicated talks to end the war. Furthermore, US President Donald Trump's statement regarding stabilizing the oil market somewhat eased investor concerns. 3. The fear index cooled down. The India VIX, a measure of market fear, fell nearly 10% to 19.04. This indicates that market panic has eased somewhat and investors are becoming more willing to take risks.
What does this indicate for the market going forward? Market experts say that market volatility may continue in the coming days, as global events and war-related news could influence the market. From a technical perspective, the 24,625 level is considered a strong resistance for the Nifty. If the market stays above this level, it could reach 24,840. However, if the Nifty slips below 24,370, the decline could extend to 24,000 to 23,550. Experts say that in such an environment, instead of panicking, investors should gradually invest in quality stocks and maintain patience.
Read More: Stock Market: Will the stock market crash even faster? Read what experts are worried about.
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