The Indian stock markets concluded the turmoil of about one per cent on Thursday. This was possible due to the purchase of beaten shares in the broad market. The decline in US dollar and crude oil prices further strengthened the perception of investors.
After a ups and downs of 975 points, the benchmark Sensex gained 610 points, or 0.8 per cent, to close at 74,340. The Nifty lasts at 22,544.7 with an increase of 207.4 points i.e. 0.93 per cent. Both indices took the lead in the second consecutive session with the Nifty over the longest 10 -day decline and nine months from the lower level.
In the last two sessions, the Sensex gained 1.85 per cent and the Nifty by 2.1 per cent. In the last three sessions, the total market capitalization of firms listed in BSE reached Rs 398 lakh crore with an increase of Rs 13.6 lakh crore.
The credit for the increase in the last two days goes to the trend of buying shares at an attractive price after the recent selling. The Indian equity has been observing the brunt of the last five months due to high evaluation, weakened companies’ profits and frequent withdrawal concerns of foreign portfolio investors (FPIs).
The founder of Equinomics G. Chokalingam said, I felt that by the end of March, the market would recover from the decline as the decline was quite severe. The Indian market has paid the price of bloated prices and now an attractive evaluation has been done in some areas. There may be some ups and downs in the future. But the market will be in recovery mode.
Reliance Industries, the second highest weight in benchmark indices, contributed to about one third of the lead. After a positive report of several brokerage, its shares increased by 3 per cent. Kotak Institutional Equities said that the risk-failure profile for Reliance Industries has now become more favorable after a huge decline. Brokerage hopes that the retail business will improve in the next few quarters, including other possible events including the deadliest and another fee increase of the IPO of the telecom business.
On Thursday, the dollar index declined by 3.2 per cent and came to 104.1. This caused purchases in metal like high beta sector. The Nifty Metal Index increased by 2.34 per cent, increasing by two days to more than 6 per cent. Jindal Stainless and Hindustan Zinc were the highest profit in the metal index, with 6 per cent and 4 per cent growth respectively.
The fall in the prices of Brent crude 4.6 per cent during the week also strengthened the perception. Loss of crude oil prices are beneficial for India as oil is a large part of its imports. Asian paints (for which crude oil is the major input) increased by 4.6 percent and a leading profit on both Sensex and Nifty. Oil marketing companies also recorded strong benefits.
Trade tension was also reduced by the US President’s vehicle manufacturer of Canada and Mexico at a 25 per cent fee to vehicle manufacturing companies of Canada and Mexico.
Siddharth Khemka, head of research head of Motilal Oswal Financial Services, said, positive global signs have increased the market optimism. The ratio of the market climbing and falling in the market was strong and 3,006 shares rose while 990 declined. Axis Bank rose 1.9 per cent while NTPC increased by 3.4 per cent and their contribution to the increase was significant.
First Published – March 6, 2025 | 9:58 PM IST
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