Feedback | Tuesday, June 25, 2024

06/06/24 | 6:52 pm

Nifty, Sensex rebound as investors await govt formation

Indian markets continue to recover from the losses of election results day. The Nifty 50 index surged 201 points, or 0.89 percent, to 22,821.40, while the BSE Sensex climbed 692 points to 75,074, reflecting a 0.93 percent gain.

In the sectoral indices, all except Nifty FMCG, Nifty Pharma, Nifty Private Bank, and Nifty Healthcare Index closed in the green.

The volatility of the Nifty also declined, with the India VIX standing at 16.80. In the broader market, all indices registered gains on Thursday, indicating investor confidence in the Indian equity markets.

“The Nifty continued to rise after a bullish pattern formation yesterday on the daily timeframe. However, during the day, the index remained range-bound, oscillating between 22,650 and 22,900. The India VIX has slipped sharply below 17 in the last two days, signaling low volatility. In the near term, the index might continue remaining within the bands of 22,600-23,000,” said Rupak De, Senior Technical Analyst, LKP Securities.

Leading the gains on the Nifty 50 were HCL Technologies, SBI Life Insurance, Tech Mahindra, Sriram Finance, and State Bank of India. On the flip side, Hindalco Industries, Hero MotoCorp, Hindustan Unilever, Asian Paints, and Nestle India were among the top laggards.

On Thursday’s trading session, a total of 2,739 stocks opened for trading. By the close, 2,233 shares advanced, 405 declined, and 101 remained unchanged.

“Amid stronger-than-anticipated economic data in the Eurozone, particularly in inflation and wage growth, analysts remained uncertain about the extent of future rate cuts by the ECB. The Bank of Canada recently became the first G7 country to cut rates in this cycle, preceding the upcoming U.S. Federal Reserve meeting next week,” said Varun Agarwal, MD, Profit Idea.

In international markets, the euro strengthened ahead of the European Central Bank’s anticipated interest rate cut, the first in nearly five years. The pan-European STOXX 600 and the MSCI 47-country main world index approached new peaks.

Overall, the Indian equity markets showed a robust recovery, driven by strong performances in key sectors and positive sentiment among investors.

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Last Updated: 25th Jun 2024