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Markets End Day On Positive Note; Recover From 7-Month Low

The Nifty closed at 23,207.60, gaining 121.65 points or 0.53 per cent, while the BSE Sensex rose by 169.62 points or 0.22 per cent, ending at 76,499.63.

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Markets End Day On Positive Note; Recovers From 7-Month Low

REPRESENTATIVE

Domestic stock markets ended on a positive note on Tuesday, recovering from a seven-month low reached in the previous trading session. This recovery followed concerns over the declining rupee and worries about domestic company earnings.

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The Nifty closed at 23,207.60, gaining 121.65 points or 0.53 per cent, while the BSE Sensex rose by 169.62 points or 0.22 per cent, ending at 76,499.63.

Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, commented on the market's performance, saying, "Markets found some relief after the recent downturn, ending the day with nearly half a per cent gain. Following a gap-up opening, Nifty edged higher during the initial trades, but pressure on select heavyweights limited the recovery."

Experts noted that after the fall in the previous session, the markets were nearly in oversold territory, which could lead to a brief surge. However, they cautioned that investors may adopt a "sell on every rise" strategy, or the market may continue to climb from this point. Mishra explained that the rebound was largely driven by oversold conditions, which often trigger such recoveries.

"IT and FMCG, which had shown resilience until now, are beginning to exhibit signs of weakness, while other sectors remain under bearish pressure. We thus recommend adopting a stock-specific approach and prioritising risk management in the current environment," Mishra added.

VLA Ambala of Stock Market Today also highlighted challenges for the market, stating, "Expectations to mimic recent years' gains may lead to disappointment due to weak demand and slow GDP growth. In addition, India is heavily dependent on crude oil for fuel requirements, and the rising crude prices, adding to fixed costs, remain a big challenge in controlling inflation and boosting demand."

She further mentioned that geopolitical tensions and the rupee's decline are likely to persist, benefiting IT earnings but impacting other sectors. "Amid these conditions, investors should focus on clear goals by planning accordingly and avoiding market noise," Ambala advised.

On the National Stock Exchange (NSE), top gainers included Adani Enterprises, Adani Ports, NTPC, Hindalco, and Shriram Finance. Meanwhile, HCL Tech, HUL, Apollo Hospitals, Titan Company, and TCS were among the top losers.

Except for IT and FMCG, all sectoral indices ended in the green, with the BSE Midcap index rising 2 per cent and the Small-cap index up 1.7 per cent.

nifty BSE Sensex Indian Stock Market