August 16th 2024.
In Mumbai, the stock market saw a significant surge as the Sensex rose by 1,330 points and the Nifty jumped 397 points. This was the result of a strong rally in global stocks and increased buying in IT shares and Reliance Industries. The Sensex, a key index of the Bombay Stock Exchange, closed at a more than two-week high of 80,436.84, marking its best single-day gains in more than two months. During the day, it reached an even higher peak of 80,518.21, a jump of 1,412.33 points.
The National Stock Exchange's Nifty also saw a significant increase, rising by 397.40 points to close at a two-week high of 24,541.15. The surge was not limited to a few companies, as all the sectoral indices closed in the green. Among the top gainers were Tech Mahindra, Mahindra & Mahindra, Tata Motors, UltraTech Cement, Tata Consultancy Services, HCL Technologies, ICICI Bank, and Tata Steel. The only laggard was Sun Pharma.
Even the midcap and smallcap indices saw a rise of 1.8% and 1.7% respectively, indicating a widespread positive sentiment in the market. This trend was not limited to India, as Asian markets in Seoul, Tokyo, Shanghai, and Hong Kong also closed significantly higher. In Europe, most markets were trading in the green, while the US markets ended with sharp gains on Thursday.
The stability of the Japanese yen played a crucial role in the global market's recovery, along with strong US retail sales and a decline in weekly jobless claims. These factors helped alleviate fears of a US recession and improved market sentiment. Additionally, the decrease in US CPI inflation also contributed to the positive outlook, leading to strong buying interest in Indian IT firms.
According to Vinod Nair, Head of Research at Geojit Financial Services, these factors have created a favorable environment for the stock market. On Wednesday, foreign institutional investors offloaded equities worth Rs 2,595.27 crore, while domestic institutional investors were buyers, purchasing equities worth Rs 2,236.21 crore, as per exchange data. However, global oil benchmark Brent crude declined by 1.22% to USD 80.05 a barrel, which could have a potential impact on the market.
It is worth noting that the Indian stock market remained closed on Thursday due to Independence Day. On Wednesday, the BSE benchmark climbed 149.85 points or 0.19% to settle at 79,105.88, while the NSE Nifty ended marginally up by 4.75 points or 0.02% at 24,143.75. Overall, the recent surge in the stock market is a positive sign for investors and indicates a strong recovery in the global market.
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