Contents
Bulls fight back: Sensex rises 750 pts, Nifty above 23,200; 6 key factors behind market gain
The benchmark equity indices Sensex and Nifty rebounded sharply on Friday after suffering steep losses in the previous session, supported mainly by easing crude oil prices and value buying.
At around 1:30 pm, the Sensex was up 754.10 points or 1.02 percent at 74,961.34, while the broader Nifty was at 23,263.35, up 261.20 points or 1.14 percent. About 2,586 shares advanced, 1,252 shares declined, and 132 shares were unchanged.
In the previous session, both indices had declined 3.3 percent, marking their worst fall since June 2024, led by heavy selling in index heavyweight HDFC Bank following the sudden exit of its part-time chairman.
All 16 major sectoral indices were trading in the green. The broader markets also advanced, with the Nifty Smallcap100 rising 0.8 percent and the Nifty Midcap100 gaining 1.5 percent.
Reliance Industries, Tata Steel and Coal India were among the top gainers in the Nifty50 pack, rising up to 4 percent, while HDFC Bank and Bajaj Finance were among the top drags, declining up to 2 percent. Market breadth was positive as about 2798 shares advanced, 901 shares declined, and 133 shares unchanged.
Key factors behind market rise
1) Easing crude oil prices:Â Brent crude, the global oil benchmark, declined 1.63 percent to USD 106.9 per barrel after surging to USD 119.13 in the previous session amid attacks on energy infrastructure in West Asia. The fall in oil prices provided relief to global markets.
“Indications that Israel may avoid targeting Iran’s energy infrastructure have eased immediate fears of supply disruptions, bringing some relief to markets. Sentiment remains highly driven by events in the Middle East,” said Ponmudi R, CEO, Enrich Money.
2) Value buying: Investors resorted to value buying after Thursday’s sharp sell-off. Analysts had also indicated the possibility of a technical rebound from the 23,000 level.
Stock Market Live Updates
3) Firm global cues: Asian markets such as South Korea’s Kospi and China’s Shanghai SSE Composite were trading higher. US markets ended lower on Thursday but recovered from intra-day lows after easing geopolitical concerns.
4) Hopes of easing geopolitical tensions:Â Investor sentiment improved after indications of possible de-escalation in the West Asia conflict, including comments suggesting no further attacks on energy infrastructure.
“Today there is potential for the market to move up since hope of de-escalation is back. This has cooled Brent crude to USD 106 from the peak of USD 118,” said V K Vijayakumar, Chief Investment Strategist at Geojit Investments.
5) Decline in volatility index: India VIX, the market’s fear gauge, fell nearly 3 percent to 22.14. A lower VIX indicates reduced volatility expectations and tends to support equity markets by improving investor confidence.
6) Buying in index heavyweights: Shares of Reliance Industries rose more than 3 percent on value buying after the previous session’s decline, supporting the overall market.
Technical outlook
Anand James, Chief Market Strategist at Geojit Investments, said the Nifty may attempt a recovery towards 23,435, aided by a mean reversion following the recent sharp fall. However, he added that failure to move above 23,190 or a drop below 22,930 could trigger further downside towards 22,560 and potentially 22,000.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Source : Moneycontrol