Image Source : FILE Business stock exchange building
In a display of resilience and positive market sentiment, the Indian stock markets opened the week on a high note, with the Nifty index hovering around the 19,150 mark and the Sensex surging by 490 points. The strong opening came on the back of favorable global cues, positive corporate earnings, and an overall optimistic economic outlook.
The National Stock Exchange’s (NSE) Nifty 50 index, which represents the top 50 companies listed on the NSE, started the day with strength and sustained gains throughout the trading session. It reached an intraday high of 19,160.75 points, a level that has not been seen in recent weeks. The index closed at 19,149.35, up by 0.94% or 178.65 points from the previous close.
An important highlight of the day was the widespread gains across all major sectoral indexes. Information technology (IT) companies, in particular, benefited from the news, as they are sensitive to US interest rates due to their substantial exposure to US clients. The sector saw an increase of 0.78 percent.
Among the Nifty 50 stocks, 42 reported gains. Britannia Industries stood out with a notable climb of 2.96 percent after surpassing profit estimates for the September quarter. GAIL, a gas distribution company, surged by 3.91 percent after entering a propane supply agreement with Bharat Petroleum Corp., which added 1 percent to its stocks. Dabur India also registered a 2.57 percent increase in response to the company’s better-than-expected quarterly profit, driven by robust demand.
During its Wednesday meeting, the US Federal Reserve maintained the status quo by keeping interest rates unchanged, a decision that had been widely anticipated. Jerome Powell, the Fed Chair, stated that inflation pressures had been receding.
Aditya Gaggar, Director of Progressive Shares, remarked on the market’s performance, saying, “The market commenced the weekly expiry day on a strong note above 19,000, but the higher levels did not last for long and erased the majority of its gains. In the second half of the trading session, PSU Banks, Metal, and select heavyweights took the lead, helped the index recover, and ended the session at 19,133.25 with gains of 144.10 points.”
He went on to describe the market’s behavior, noting, “With gains of more than 1.30 percent, mid- and small-caps outperformed the frontliners. On the daily chart, Nifty50 has made a DOJI candlestick pattern, which represents indecisiveness between the bulls and bears, and at present, it is standing in the middle of the range (18,800–19250), awaiting a clear breakout on either side.”
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