The stock market today saw a significant rebound after three consecutive days of losses, with domestic equity benchmarks Sensex and Nifty 50 making strong gains. This recovery was driven by positive global cues, a rally in global markets, and value-buying in metal, IT, and oil shares at lower levels. The market also reacted positively ahead of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) policy decision, scheduled for Thursday.
The BSE benchmark Sensex surged 874.94 points or 1.11% to settle at 79,468.01, while the NSE Nifty jumped 304.95 points or 1.27% to 24,297.50. The broader market also saw gains, with the BSE midcap gauge rising 2.63% and the smallcap index climbing 2.39%. The market capitalization of BSE-listed firms increased by ₹8,97,352.99 crore to ₹4,48,57,306.55 crore ($5.34 trillion) following the recovery.
The recent market slump, which saw the frontline indices decline by around four percent in the past three sessions, was attributed to a global market rout. However, positive comments from US Federal Reserve officials helped global markets rebound on Tuesday, easing concerns over a potential recession. In India, profit booking near record-high levels and rich valuations delayed the market’s recovery by a day.
The RBI’s rate-setting panel began its three-day deliberations on Tuesday, with expectations of no change in the benchmark interest rate. The central bank’s policy verdict by RBI Governor Shaktikanta Das-headed six-member MPC is set to be announced on August 8. The Indian rupee fell to a record low against the US dollar, but positive global equities and potential RBI interventions may offer support.
Among the top gainers in the market today were Adani Ports & SEZ, Power Grid, Tata Steel, and JSW Steel. On the other hand, IndusInd Bank, Bharti Airtel, Hindustan Unilever, Tech Mahindra, and Titan were among the laggards. The oil & gas sector saw a significant jump, with ONGC reporting a quarterly profit beat and Lupin surging after reporting higher-than-expected profits for the June quarter.
All major sectoral indices ended in positive territory, with metals, energy, and pharma emerging as the top performers. Oil & Gas, metal, energy, capital goods, telecommunication, services, commodities, and healthcare sectors all saw gains. The realty index also jumped about two percent following the relaxation of new tax rules that could have led to higher capital gains tax on certain property sales.
Experts in the market highlighted the rebound in global markets and optimism in equity indices, although risk-off sentiment could still prevail due to rising tensions in the Middle East. Technical analysis on the Nifty 50 suggested a sideways movement with resistance at 24,400-24,500 levels. Investors are advised to consult with certified experts before making any investment decisions, as market conditions can change rapidly.
In conclusion, the stock market today witnessed a strong recovery driven by positive global cues and value-buying in key sectors. The upcoming RBI policy decision and global economic outlook will continue to influence market trends in the coming days. Investors should stay informed and seek expert advice to navigate the volatile market conditions effectively.