The NSE and BSE stock markets had a crash on Thursday following week-long fall but today, the market rose and rebounded. The NSE Nifty rose by 0.19 per cent while the BSE Sensex was up by 0.05 per cent.
Why did the stock market fall?
The stock market continued to sell off on Thursday. The Nifty 50 index opened lower in the early morning session and ended 1.55 per cent lower. The BSE Sensex also opened in red and closed 1.45 per cent lower.
There are several reasons why the market is falling. First, the Lok Sabha elections had discounted the victory of the BJP. Thus, now the stock markets are overbought. Second, FII selling is very heavy this month. They sold out Indian shares worth Rs 15,863 crore till Thursday. Third, the non-impressive Q4 results of several companies like L&T, Lupin Ltd, etc. were a significant contributor to the stock market fall.
Saurabh Jain, Vice President of research at SMC Global Securities, said, “There are combinations of reasons that are dragging Indian indices together. Ongoing Lok Sabha polls, continuous selling by FIIs, not so impressive Q4 results season, hawkish US Fed and rising VIX India Index can be attributed as one of the major reasons weighing on the Indian stock market these days.”
‘Stocks are looking attractive’
Today, the stock market has fairly rebounded from the weeklong fall. NSE Nifty rose by 0.19 per cent to 21,998.70, while the BSE Sensex was up at 72,441.21.
A total of 3820 stocks were actively traded, 1,880 advanced, while 1,782 declined and 158 stocks remained unchanged where 97 stocks hit a 52-week high and 39 stocks hit a 52-week low at 1.13 pm on the BSE.
Vikas Jain, Senior Research Analyst at Reliance Securities, said, “The markets opened on a positive note on account of a rally in the global markets. Gift Nifty is up nearly 100 points or 0.5 per cent but difficult to stay that it will sustain on a full day. Nifty suffered their worst day in about four months (down 1.6 per cent) yesterday”.
He further said, “Recent correction of nearly 4 per cent is a good entry point in the market. Auto, banks, metal, PSU stocks are looking attractive after a recent correction.”
Major gainers & losers at NSE & BSE
At NSE, major gainers are BPCL (3.75 per cent), Hero MotoCorp (2.94 per cent), NTPC (2.56 per cent), Adani Ports (2.44 per cent), Asian Paints (2.31 per cent).
Major losers include TCS (-1.55 per cent), Infosys (-1.29 per cent), Tech Mahindra (-1.27 per cent), LTIMindtree (-1.07 per cent), Kotak Bank (-0.97 per cent).
BSE Small cap was up 0.087 per cent and Midcap rose 0.15 per cent.
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