Tuesday, July 16, 2024

Sensex Recovers: Equity Indices Gain Momentum on Banking Stocks and Positive European Market Openings


Sensex Pares Losses, Ends 131 Points Higher

Monday’s trading session witnessed a slight uptick in benchmark equity indices, buoyed by significant buying in banking stocks and a positive opening in European markets. Despite starting the day on a weaker note, the markets managed to reverse the early losses and close in the green.

The BSE Sensex, encompassing 30 shares, concluded the day with a gain of 131.18 points or 0.17 percent, standing at 77,341.08. The session began with the index experiencing a downturn, falling 463.96 points or 0.60 percent, to a mark of 76,745.94. However, sentiments improved as the day progressed, with the Sensex briefly touching a high of 77,423.02, up by 213.12 points or 0.27 percent.

Similarly, the NSE Nifty edged up by 36.75 points or 0.16 percent, to close at 23,537.85.

The upswing was led by notable gains in key Sensex constituents including Mahindra & Mahindra, Power Grid, Sun Pharma, Nestle, UltraTech Cement, NTPC, ITC, ICICI Bank, Titan, Bajaj Finserv, Bharti Airtel, and HDFC Bank, showcasing the breadth of the rally across multiple sectors.

On the flip side, certain stocks like IndusInd Bank, Adani Ports, Tata Steel, Reliance Industries, Axis Bank, and Bajaind the oil benchmark Brent crude experienced a modest lift, climbing 0.41 percent to reach $85.59 a barrel, highlighting the volatile nature of global markets and their potential impact on domestic indices.

As businesses and investors navigate through the intricacies of the financial landscape, the maintenance of India’s GDP growth forecast by S&P Global Ratings at 6.8 percent for the current fiscal year was a noteworthy highlight. The rating agency emphasized an ongoing robust economic performance, with an exceptional projection of 8.2 percent growth in the subsequent fiscal year, albeit cautioning against high-interest rates and subdued fiscal stimulus as potential dampeners to demand.

Internationally, the trading day saw mixed outcomes in Asian markets. While Seoul, Shanghai, and Hong Kong experienced declines, Tokyo closed with gains, painting a picture of varying investor sentiments across the region.

In the backdrop of these developments, Foreign Institutional Investors (FIIs) sold off equities worth Rs 1,790.19 crore on the preceding Friday, shining a light on the continuous shuffle in portfolio allocations in response to evolving market dynamics.

The interplay of these factors underscores a day of cautious optimism in the Indian stock markets, marked by selective buying in key sectors and a watchful eye on global market trends and economic forecasts.

Alexandra Bennett
Alexandra Bennetthttps://www.businessorbital.com/
Alexandra Bennett is a seasoned business journalist with over a decade of experience covering the global economy, finance, and corporate strategies. With a Bachelor's degree in Economics and a Master's in Business Journalism from Columbia University, Alexandra has built a reputation for her insightful analysis and ability to break down complex economic trends into understandable narratives. Prior to joining our team, she worked for major financial publications in New York and London. Alexandra specializes in mergers and acquisitions, market trends, and economic

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