By Jessica Murdock
A broad-based recovery in information technology (IT), financial, banking, and energy stocks led to a significant rebound in the Indian stock market. A sharp recovery in Adani Group stocks also contributed to the positive momentum.
Sensex and Nifty50 Close Strong
At the close of trading, the S&P BSE Sensex surged by 1,961.32 points, reaching 79,117.11, while the NSE Nifty50 gained 557.35 points to settle at 23,907.25. At one point, the Sensex had rallied over 2,000 points during the session, showcasing a robust market response.
Key Drivers of the Rally
The rally was largely attributed to significant gains in large-cap stocks such as SBI, Bajaj Finance, Titan, ITC, TCS, Reliance, Infosys, ICICI Bank, and HDFC Bank. Notably, of the 50 stocks listed on the Nifty50, only Bajaj Auto ended the day in the red, indicating widespread bullish sentiment.
Expert Insights
Vinod Nair, Head of Research at Geojit Financial Services, noted that the market’s recovery was significant, stemming from an oversold condition, particularly among large-cap stocks. He highlighted that attractive valuations and expectations of improved corporate earnings in the second half of the fiscal year played a crucial role in the rebound.
Meanwhile, Vishnu Kant Upadhyay, AVP – Research and Advisory at Master Capital Services, emphasized the importance of the market moving above the critical 200-day exponential moving average (EMA). He mentioned that global factors, including a modest decline in Japan’s October inflation and a substantial 39 trillion yen stimulus package, also helped bolster market sentiment.
Political Factors Boost Market Confidence
Market sentiment was further buoyed by exit polls from the Maharashtra elections, suggesting a likely victory for the Mahayuti alliance. This potential win for the BJP-led NDA is viewed as a positive indicator for renewed government-led capital expenditure initiatives, following a similar victory in Haryana.
As the market rebounds, analysts remain optimistic about the future, anticipating continued strength in both banking and IT sectors.
