Share Market Update: The Indian stock market celebrates as the charts and candles surge beyond the expectations of market enthusiasts. The Bulls captured today’s market as benchmark indices, Sensex and Nifty, rebounded after several days of decline. This comeback brought a 1,000-point jump in the Sensex, while Nifty rallied above 23,750, driven by value buying at lower levels.

Share Market Update: Major Gaining Sectors-

The market witnessed a strong comeback of mid-cap and small-cap stocks, with the Nifty Smallcap gaining 2.07%. In the major sectoral indices, Nifty Media was the top performer, making a 3.84% gain. The sector saw a sharp rise in Zee Entertainment, surging nearly 9% after the news of Punit Goenka’s resignation as Managing Director.

Until yesterday, Nifty IT was the key losing sector, but today the trend has shifted. Nifty IT emerged as the biggest sectoral gainer. Additionally, the Nifty PSE Index, which tracks 20 state-run companies, rose by more than 2%, with all its constituents trading in the green.

What Is The Reason Behind The Surge And Recovery Of The Market?

In today’s trading session, trends showcased a slowdown in selling by foreign investors, combined with consistent buying by domestic institutional investors (DIIs). These sentiments contributed to the recovery after so many days of extensive crashes. Check major factors that brought the comeback:

• Slowdown in FII Selling and Increase in DII Buying: In the previous trading session, FIIs net sold shares worth Rs 1,403 crore, while DIIs bought shares worth Rs 2,330 crore, nearly double the FII outflow. This brought in strong domestic support, despite the foreign selling.

• Oversold Markets: The Nifty’s Relative Strength Index (RSI) dropped below 30, a figure that reflects the results of the previous session, indicating oversold conditions. “Such downtrends and oversold levels often lead to short-term rebounds, and the bounce we’re seeing today was overdue,” said Akshay Chinchalkar, Head of Research at Axis Securities, in a statement to Reuters.

• Firm Asian Market and Dollar Retreat: Asian markets rallied as US bond yields eased, and the dollar weakened. The market was also heavily influenced by the US Presidential Election 2024. Investors watched Trump’s cabinet picks and the implications for US Federal Reserve policies.
• To add a cherry on the cake, the rupee remained stable, trading at 84.40 against the dollar at 10:23 AM, showing only minimal movement from its previous close. Gains were supported by the weaker dollar and gains in regional currencies.

(Disclaimer: This article is for informational purposes only and should not be construed as an investment advice. Prior to making an investment, conduct thorough research and consult with your financial advisor.)

(Also Read: Share Market Opening: Market Opens On Flat Note, Sensex At 77,574.97 And Nifty At 23,529.55)