News Arena

Join us

Home
/

sensex-rebounds-with-875-points-nifty-surges-above-24-300

Economy

Sensex rebounds with 875 Points, Nifty surges above 24,300

In a much-needed boost for the stock market, the benchmark indices ended their three-day losing streak with a strong performance, largely driven by positive global cues. Both the Nifty 50 and Sensex saw significant gains as global markets rebounded from earlier fears of a US recession, following reassurances from Federal Reserve officials. This uptick in global sentiment provided a much-needed lift to domestic equities.

News Arena Network - Mumbai - UPDATED: August 7, 2024, 05:26 PM - 2 min read

Stock Market Rebounds Sensex and Nifty Post Strong Gains.

Sensex rebounds with 875 Points, Nifty surges above 24,300

Stock Market Rebounds Sensex and Nifty Post Strong Gains.


In a much-needed boost for the stock market, the benchmark indices ended their three-day losing streak with a strong performance, largely driven by positive global cues. Both the Nifty 50 and Sensex saw significant gains as global markets rebounded from earlier fears of a US recession, following reassurances from Federal Reserve officials. This uptick in global sentiment provided a much-needed lift to domestic equities.

 

At the close of trading, the Sensex was up by 1.11 percent, reaching 79,468 points, while the Nifty 50 rose by 1.27 percent to settle at 24,297 points. The market saw broad-based gains, with approximately 2,685 shares advancing, 713 shares declining, and 71 remaining unchanged. This turnaround came after several challenging days marked by declining stock prices and investor uncertainty.

 

The relief rally was partly attributed to positive developments in global markets. The Bank of Japan's recent statements that interest rates would not be raised during periods of market instability helped stabilise the Yen and alleviated fears related to the Yen carry trade. This reassurance contributed to a more stable trading environment and improved investor confidence.

 

India VIX, a gauge of market anxiety, fell nearly 14 percent to just above 16, signalling a decrease in market volatility. Despite foreign institutional investors (FIIs) being significant sellers in the Indian cash market over the past three days, domestic institutional investors (DIIs) have countered this by increasing their buying activity. This support from DIIs has provided some stability to the market amid the recent volatility.

 

The broader market, including mid-cap and small-cap indices, also ended the day on a high note. Both indices posted gains of nearly three percent each, outpacing the Nifty's rise for the day.

 

This performance highlights the broader market's strength, which has consistently outperformed the headline indices since the start of the year. However, market valuations remain elevated, and investors are advised to focus on large-cap stocks over mid-caps and small-caps.

 

Sector-wise, all major indices ended in positive territory, with the Nifty Metal index leading the charge. Notable gains in stocks such as Vedanta, Tata Steel, Adani Enterprises, and Hindalco contributed to the sector's strong performance.

 

The Nifty Energy index also saw significant gains, supported by rallies in ONGC, Coal India, and Power Grid. Conversely, the Nifty Bank index was the laggard, posting gains of less than one percent.

 

Among the biggest gainers on the Nifty were Coal India, Adani Ports, Power Grid Corp, Cipla, and HCL Technologies. On the flip side, the day's losers included IndusInd Bank, Eicher Motors, Britannia, Tech Mahindra, and Asian Paints.

 

Looking ahead, the focus remains on the upcoming Reserve Bank of India (RBI) policy decisions, which are expected to maintain the current interest rates and support the positive economic outlook.

 

Vinod Nair, Head of Research at Geojit Financial Services, emphasised that the market is awaiting clarity from the RBI, which will play a crucial role in shaping investor sentiment in the near term.

 

Overall, the market's recovery today reflects a positive shift in sentiment, driven by both global and domestic factors. Investors will be closely watching further developments and policy announcements to gauge the sustainability of this upward momentum.

TOP CATEGORIES

  • Paris Olympics

QUICK LINKS

About us Rss FeedSitemapPrivacy PolicyTerms & Condition
logo

2024 News Arena India Pvt Ltd | All rights reserved | The Ideaz Factory