Nifty PSU Bank, Oil and Gas, IT, and Realty were among the major sectoral gainers. Nifty PSU Bank witnessed a sharp recovery today and was trading higher by 2.98%.
Both equity benchmark indices Nifty and Sensex have seen a steady and sharp recovery from Thursday’s closing levels. Buying by domestic institutional investors and firm trends in US markets have also added to the recovery in the domestic market.
From the 50-share Nifty pack, State Bank of India, Tata Consumer, TCS, JSW Steel, ITC, UltraTech Cement, HCLTech and Reliance Industries were the biggest gainers.
The uptick comes a day after the Indian stock market reversed Tuesday’s gains, with the Nifty50 index ending at a five-month low.
Shares of Adani Group companies are witnessing sharp fluctuations today after initially extending losses from Thursday’s fall.
Adani Ports shares, which fell as much as 6% at the start of trade have now turned positive. Adani Enterprises, which fell 7% in early trading, have also recovered all of their losses.
“This recovery was marked by a sharp rebound above the critical 200-day EMA, supported by strength in Banking and IT stocks. Bargain hunting in heavyweight stocks at an attractive valuations boosted investor sentiment,” said Vishnu Kant Upadhyay of Master Capital Services.
A rise in the dollar index enhanced the appeal of IT stocks. Additionally, the market sentiment was buoyed by exit polls from the Maharashtra election, indicating a likely victory for the Mahayuti alliance. This would mark the BJP-led NDA’s second consecutive state assembly win, following Haryana, which is seen as a positive signal for renewed government-led capital expenditure initiatives.
Additionally, the recent economic data indicated continued strength in India’s economy as well as stability in major economies like US. The Indian markets showed a bullish rally today, significantly influenced by the performance of global markets.
“Looking at the way markets are performing today, it looks like Markets are believing the Maharashtra election outcome would be one-sided assuming BJP lead team will make it happen with huge majority,” said Prashanth Tapse of Mehta Equities.
Tapse said that a similar kind of rally was seen on Tuesday first half before vote day and what happened later we all know it.
The Nifty has trendline support at the 23,000 mark, which is expected to act as a strong psychological support level for the benchmark index. With the index hovering around its 200-period moving average and showing some bounce from lower levels, Tapse expects it to move towards the 23,500 and 23,800 levels.
He advised investors to add a strict stop-loss at the 23,000 mark on a closing basis for all long positions on Nifty.