Business

Indian Stock Market Surge On Political Stability & RBI Policy

In a week marked by political upheaval and monetary policy announcements, the Indian stock market witnessed substantial volatility but ultimately closed with gains exceeding 3 percent.

Prime Minister Narendra Modi’s historic third-term victory and significant policy decisions by the Reserve Bank of India (RBI) drove the surge in market indices.

Remarkable Recovery In Just Three Sessions

The BSE Sensex soared to a new all-time high, peaking at 76,795.31 points, while the Nifty also achieved a record high of 23,338.70 points.

On Friday, the Sensex witnessed a remarkable upswing of 2,732 points or 3.69 percent, concluding the week at 76,693.36 points. Similarly, the Nifty surged by 759 points or 3.37 percent, settling at 23,290 points.

In just three trading sessions following the formation of the new government, investors saw a remarkable recovery, recuperating losses totaling more than Rs 28 lakh crore.

The week saw a robust performance across market segments, with the BSE Small-cap index and Mid-cap Index both climbing by 3 percent, paralleled by a 3 percent rise in the large-cap Index.

Foreign institutional investors (FIIs) notably divested equities worth Rs 13,718.42 crore, while domestic institutional investors (DIIs) displayed confidence by purchasing equities worth Rs 5,578.71 crore.

Market experts attribute the significant uptick in the Nifty to a rebound from a previous flat closing session.

They anticipate a continued bullish trend, asserting a buy-on-dips strategy until the crucial support level of 23,000 remains intact.

Rupak De, Senior technical analyst at LKP Securities, foresees the potential for the Nifty to ascend towards 23,500-23,600, with profit booking anticipated only below the 23,000 mark.

The Bank Nifty also exhibited bullish momentum, finding support near its 10-day moving average and forming a bullish engulfing candle on the daily chart.

Analysts highlight its close proximity to the key resistance level of 50,500, with 49,200 identified as crucial support.

Amidst market fervor, the Indian rupee demonstrated strength, appreciating by Rs 0.11 to conclude at 83.40 against the dollar.

This upward trajectory is attributed to capital market gains and sustained buying activity following the general election.

Also Read: Adani Ports Awarded Contract For Kolkata Port Container Terminal Operations

Mankrit Kaur

Recent Posts

Devotees Mistakenly Collect AC Condensation As ‘Charan Amrit’ At Mathura Temple

Devotees at Mathura's Banke Bihari temple gathered to collect water dripping from a sculpted elephant,…

2 mins ago

State Cannot Claim Private Property Under Article 39(b): Supreme Court

A nine-judge SC bench ruled that the State cannot indiscriminately seize private property for redistribution…

30 mins ago

RG Kar Case: Junior Doctors In West Bengal Protest Alleged Gaps In CBI Chargesheet

Junior doctors in WB protested Tuesday over alleged flaws in the CBI chargesheet on their…

56 mins ago

Supreme Court Upholds Uttar Pradesh Madrasa Education Act; Sets Limits On Higher Education Regulation

The SC upheld the UP Board of Madrasa Education Act, 2004, reversing the Allahabad High…

1 hour ago

How US Presidential Election Is Conducted – Explained

The US presidential election is a complex, multi-step process that involves both voters and an…

2 hours ago

Mumbai Police Uncover Connections & Weapons In Baba Siddiqui Murder Investigation

The Mumbai Police disclosed that the firearms used to assassinate late NCP leader Baba Siddiqui…

3 hours ago