In a dramatic trading session yesterday, the Indian stock market pulled off a stunning recovery after a shaky start.
Markets Bounce Back with a Bang
The Sensex, which plunged over 1,200 points in early trade to hit an intraday low of 80,083, rebounded sharply to close 843 points higher (1.04%) at 82,133. Similarly, the Nifty 50 surged back from a 370-point drop to end the day 219 points higher (0.9%) at 24,768.
This remarkable turnaround came after a turbulent week for investors, restoring some confidence in the markets. Analysts credited the recovery to gains in sectors like telecom, IT, FMCG, and financial services.
What Drove the Market Recovery?
- Sector Strength: Telecom stocks led the charge, with Bharti Airtel surging nearly 4%, while financial services, FMCG, and IT also performed strongly.
- Inflation Relief: Retail inflation eased to 5.48% in November, falling back within the Reserve Bank of India’s tolerance band. This raised hopes for potential rate cuts in the near future, boosting market sentiment.
- Derivative Expiry Impact: The weekly expiry of derivatives contracts on Sensex added to the day’s volatility, but late buying helped markets recover dramatically.
Broader Market Trends
Despite the rebound in large-cap indices, the broader market struggled. The BSE MidCap index closed flat, while the BSE SmallCap index dropped by 0.3%, showing that smaller stocks weren’t part of the rally.
Stock Watch: Market Indices
- Stock Market Index Value
- Nifty 50: 24,780 (up 0.95%)
- BSE Sensex: 82,177 (up 1.09%)
- Nifty 500: 23,363
- Nikkei (Japan): 39470 (Down -0.95%)
- STOXX (Europe): 4967 (+0.049%)
- Dow Jones: 43828 (-0.2%)
- S&P 500: 6051 (Steady)
- NASDAQ : 19926 (Up +0.12%)
Top Performers and Laggards
Top Gainers:
- Adani Enterprises
- Tech Mahindra
- IndusInd Bank
- Bharti Airtel, and
- Adani Ports.
Top Losers:
- NTPC
- Hero MotoCorp
- Hindustan Unilever
- Coal India, and
- BPCL
Global Market Watch
On the global front, markets were cautious ahead of the Federal Reserve’s key meeting next week, which could set the tone for monetary policy worldwide. Asian markets showed mixed results, with Japan’s Nikkei down 0.95%, while European indices like the STOXX closed slightly higher. In the U.S., the Dow Jones dipped 0.2%, reflecting investor jitters.
Looking Ahead
Investors will keep an eye on global trends and upcoming economic data today. While easing inflation has lifted spirits, concerns over global monetary policy and broader economic challenges remain. The market’s resilience will likely be tested as traders assess the Federal Reserve’s next moves and other global developments.
Stay tuned for more updates and insights into how the week wraps up.
