Stock market revives and closes above Friday's high
Jun 05, 2024
Mumbai (Maharashtra) [India], June 5 : Indian stock markets experienced a significant surge of over 3 percent by the closing session on Wednesday, bouncing back from the losses incurred during the election results.
The NSE Nifty 50 index soared by 3.36 percent, settling at 22,620.35, while the BSE Sensex saw a robust increase of 3.20 percent, closing at 74,382.24. Both indices surpassed their closing levels from the previous Friday, when the Nifty index closed at 22,531 points.
On the day of the election results, the Nifty had plunged to a low of 21,281, and the Sensex had dropped to 46,078. Since then, the Nifty has recovered by 1,346 points, and the Bank Nifty has gained 3,250 points from the previous day's lows.
"Indian market exhibited a spirited recovery driven by broad based buying across various sectors, as political stability appears assured. However, attention will remain on the formation of the government and the forthcoming RBI policy meeting. The market does not expect any change in RBI's policy stance given persistent high food inflation, and an expectation of an increase in government spending, which has led to a notable traction in FMCG stocks," said Vinod Nair, Head of Research, Geojit Financial Services.
All sectoral indices on Wednesday saw gains ranging from 2.3 per cent to 5.8 per cent. The Key sectors such as Banking, Automobile, Financial Services, FMCG, and Metal demonstrated notable increases, each rising by over 4%. In the broader market, the BSE MidCap index surged by 4.48%, and the BSE SmallCap index climbed by 2.93%.
Leading the charge in this market rally were stocks like Mahindra & Mahindra, IndusInd Bank, and Hindustan Unilever, each posting gains of over 5%. Other significant movers included Tata Steel, Bajaj Finance, Kotak Bank, Asian Paints, and Tech Mahindra, all of which rose by over 3%.
The positive performance on Wednesday followed a turbulent session on Tuesday, where the Sensex closed at 72,079.05 points, down by 4,389.73 points or 5.74 percent, and the Nifty closed at 21,884.50 points, down by 1,379.40 points or 5.93 percent.
During that session, all Nifty sectoral indices, except for Nifty FMCG, were deeply in the red. Indices such as Nifty Metal, Nifty Bank, Nifty Financial Services, Nifty PSU Bank, Nifty Private Bank, Nifty Realty, and Nifty Oil and Gas experienced the most significant declines, according to NSE data.
The recovery on Wednesday reflects investor optimism and confidence returning to the market, with broad-based gains across various sectors.
