June 5, 2024
New Delhi, India
Market Rebound as Sensex Gains 2,303 Points, Nifty Above 22,600
Indian stock markets staged a remarkable recovery on June 5, 2024, with the Sensex surging 2,303 points and the Nifty climbing back above 22,600. This robust rebound followed a sharp decline in the previous session.
Broad-Based Gains Across All Sectors
The BSE midcap index rose by 4%, while the smallcap index gained 3%, signaling widespread investor confidence. The Sensex closed at 74,382.24, up 3.20%, and the Nifty ended at 22,620.30, up 3.36%.
Highlights of the Trading Session
- Strong Market Recovery: The Sensex and Nifty both rose over 3%, erasing some of the previous day’s losses.
- Sector-Wide Rally: All sectors ended in the green, boosting overall market sentiment.
- Adani Group Stocks: Adani stocks rose up to 5%, showing significant gains.
- Volatility Eases: The volatility index India VIX dropped by 30%, indicating reduced market uncertainty.
- Auto and FMCG Sectors: These sectors hit 52-week highs, showcasing strong performance.
Investor Sentiment Boosted by Political Stability
The market’s positive movement came as two key allies pledged their support to form a new government with the BJP, enhancing investor confidence in political stability and continuity.
FPI Stance Remains Cautious
Despite the rebound, foreign portfolio investors (FPIs) remain cautious. Their stance is expected to be neutral, with no major inflows or outflows anticipated. The lower-than-expected Lok Sabha seats for the BJP may restrict its decision-making capacity in the near term, influencing FPI strategies.
Looking Ahead
Investors are now focusing on the next steps of the Modi-led NDA and the potential impact on economic policies. The market recovery indicates renewed confidence, but caution remains as political and economic uncertainties persist.
USDINR closed at 83.458 down -0.129(-0.15%).
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