Mumbai Stock Market Recovers: Sensex and Nifty Bounce Back Amid Global Optimism
Market Recovery in Mumbai
Mumbai: On Tuesday, the key equity indices, Sensex and Nifty, experienced a notable rise following a day of significant losses, buoyed by a rebound in global markets and a reduction in tensions between Israel and Iran.
The surge in bank stocks and a decline in oil prices contributed to the positive sentiment in the markets.
The BSE Sensex, comprising 30 shares, increased by 394.50 points, or 0.54%, closing at 73,918.76. At its peak during the day, it rose by 511.15 points, reaching 74,035.41.
Similarly, the NSE Nifty, which includes 50 shares, finished 119.10 points, or 0.52%, higher at 23,242.10, with an intra-day high of 23,279.40 after climbing 156.4 points.
Among the top performers on the Sensex were InterGlobe Aviation, State Bank of India, ICICI Bank, Axis Bank, Bajaj Finance, and Asian Paints.
In contrast, Titan, NTPC, Power Grid, and Tech Mahindra lagged behind.
Brent crude oil, the global benchmark, saw a decrease of 1.66%, settling at USD 92.69 per barrel.
Asian markets also showed positive trends, with South Korea's Kospi, Japan's Nikkei 225, and Shanghai's SSE Composite index all closing higher, recovering from previous losses, while Hong Kong's Hang Seng index ended lower.
The Kospi surged by 8.18%, the Nikkei 225 rose by 2.17%, and the SSE Composite index increased by 1.28%.
European markets were also trading positively.
Vinod Nair, Head of Research at Geojit Investments Limited, commented, "Domestic markets are experiencing a slight recovery after the recent downturn, aided by a pause in tensions between Iran and Israel and lower crude prices. However, the sentiment remains delicate due to ongoing FII outflows and rising bond yields, which reflect persistent concerns about global macroeconomic conditions."
US markets had a mostly positive close on Monday.
Ponmudi R, CEO of Enrich Money, noted, "The Indian equity markets saw gains as the easing of tensions between Israel and Iran improved investor sentiment, leading to a recovery in risk assets. Global markets also remained firmly in positive territory, supported by reduced geopolitical risks, lower oil prices, and renewed optimism in the technology and AI sectors."
In a related note, Foreign Institutional Investors (FIIs) sold equities worth Rs 5,555.67 crore on Monday, according to exchange data.
On the previous day, the Sensex had dropped by 719.08 points, or 0.97%, closing at 73,524.26, while the Nifty fell by 243.70 points, or 1.04%, to settle at 23,123.