Following news that Tehran is prepared to give up its nuclear program, the major stock indices Sensex and Nifty recovered on Thursday, ending a three-session losing skid. Over the preceding three sessions, both indices had declined by almost 4%.
At 80,092.06, the Sensex increased 975.88 points, or 1.23 percent. The whole Nifty increased 323.65 points, or 1.32 percent, to 24,804.15. With 2,302 shares rising, 1,325 falling, and 129 staying the same, the market’s breadth was positive. Except for IT and FMCG, all of the key sectoral indices saw increases. Up to 0.5 percent was gained by the Nifty Smallcap 100 and Nifty Midcap 100 indices.
Key factors behind the market rise:
Value buying: Following the recent sell-off, investors started purchasing stocks at reduced prices in industries like real estate, metal, oil and gas, and autos. Heavyweights like Reliance Industries also saw purchases. Reliance Industries’ stock increased by around 3% after declining by almost 4.5% during the preceding three sessions.
Positive global cues: Sentiment was further bolstered by Asian markets. Kospi in South Korea experienced a dramatic comeback, rising by almost 10%. Hong Kong’s Hang Seng, Shanghai’s SSE Composite, and Japan’s Nikkei 225 were all rising. Wednesday’s US markets concluded in favorable territory.
India VIX falls: Known as the market’s fear measure, the India VIX dropped by almost 10% to 19.04. A decrease in the index, which gauges anticipated market volatility, typically denotes a reduction in investor fear and an improvement in market mood.
Rupee recovers: Thanks to increases in domestic equities, the rupee recovered from its recent lows and increased 48 paise to 91.57 against the US dollar. The rupee began trading against the US dollar at 92.16 on the interbank foreign exchange market, reached a high of 91.30, and ended the day at 91.57, up 48 paise from its previous close.
Forex specialists said that the local currency was still being negatively impacted by rising crude oil prices, a stronger US dollar, and ongoing outflows of foreign funds amid mounting tensions in the Middle East.
Oil and gas stocks rise: Purchasing energy-related equities helped the market as well. The oil and gas index increased by almost 2% due to shares of Reliance Industries and upstream firms like ONGC and Oil India.
