Indian Stock Markets Recover After 10-Day Fall: Sensex, Nifty See Strong Gains
After a 10-day losing streak, the Indian stock market made a strong comeback on Wednesday, with the BSE Sensex jumping 740.30 points to close at 73,730.23, while the NSE Nifty surged 254.65 points to end at 22,337.30.
After a 10-day losing streak, the Indian stock market made a strong comeback on Wednesday, with the BSE Sensex jumping 740.30 points to close at 73,730.23, while the NSE Nifty surged 254.65 points to end at 22,337.30. The recovery was driven by a weaker US dollar and broad-based buying across sectors.
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Broader Markets Witness Sharp Gains
The BSE MidCap and SmallCap indices also participated in the rally, climbing 2.66% and 2.80%, respectively. The advance-decline ratio on the BSE heavily favored advances, with 3,247 stocks gaining, while only 768 declined.
Also Read: Stock Market Opens Higher, Sensex Above 73,300
Top Gainers and Losers
Among the Sensex 30 stocks, 25 ended in the green, with Adani Ports, Tata Steel, PowerGrid, Mahindra & Mahindra, and NTPC leading the rally, gaining up to 5.02%.
However, Bajaj Finance, IndusInd Bank, HDFC Bank, and Zomato closed in the red, falling by up to 3.25%, while Maruti Suzuki ended flat.
What Drove the Market Rally?
According to Vinod Nair, Head of Research at Geojit Financial Services, the rally was fueled by a weakening US dollar despite global trade tensions, including US tariffs on Mexico, Canada, and China. The uncertainty surrounding the Federal Reserve’s interest rate decision also influenced market sentiment.
Analysts at Bajaj Broking Research noted that oversold conditions, bargain hunting in blue-chip stocks, and strength in Asian markets contributed to the rebound. All 13 major sectoral indices closed in the green, with metals, IT, and auto stocks leading the surge.
Will the Rally Sustain?
Despite the strong recovery, analysts remain cautious about its sustainability.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta Investment, highlighted that while the Nifty has formed a bullish candlestick pattern, strong resistance lies at 22,520 and 22,720, with immediate support at 21,950.
Similarly, Rupak De, Senior Technical Analyst at LKP Securities, pointed out that the 21,800-22,000 zone provided strong support, suggesting that Nifty could move towards 22,700 if momentum continues.
Traders are advised to buy near support levels and book profits around resistance zones, as market volatility remains high amid global economic uncertainties.
