The stock market made a remarkable turnaround on the last day of the week, moving from the red to the green after five consecutive sessions of decline. Both major indices, the Sensex and the Nifty, exhibited significant gains, signaling a positive shift in market sentiment.
Market Performance
Today, the BSE Sensex surged by 500.19 points or 0.68%, closing at 74,385.79 points. Similarly, the broader NSE Nifty rose by 143.80 points or 0.64%, reaching 22,632.45 points. This rebound brought a sense of relief to investors and market participants who had been witnessing a bearish trend over the past week.
Key Drivers
The market’s rise today can be attributed to several factors:
Pre-Election Anticipation: With the Lok Sabha election results scheduled to be announced on June 4, and voting for the seventh phase occurring on June 1, 2024, market participants are optimistic about a favorable outcome, potentially leading to more stability and growth in the market.
Positive Opening: The stock market opened with an upward trajectory, setting the tone for a positive trading session.
Sectoral Gains and Losses
Top Gainers: Leading the charge were stocks of Larsen & Toubro, Mahindra & Mahindra, Bajaj Finance, UltraTech Cement, NTPC, IndusInd Bank, Tata Motors, and Titan. These stocks saw significant gains, contributing to the overall rise in the indices.
Top Losers: On the flip side, shares of Infosys, Bharti Airtel, Kotak Mahindra, Tata Consultancy Services, and HCL Technologies traded lower, experiencing some losses amidst the broader market rally.
Global and Domestic Factors
The global oil benchmark, Brent crude, saw a slight dip of 0.34%, trading at US$ 81.58 per barrel. This decline in crude prices often positively impacts the Indian market, as it lowers import costs and helps reduce inflationary pressures.
On the domestic front, foreign institutional investors (FIIs) were net sellers, offloading equities worth Rs 3,050.15 crore on Thursday. Despite this selling pressure, the market managed to rise, indicating strong underlying domestic investor sentiment.
Currency Market
The Indian rupee also showed strength today, trading 11 paise higher against the US dollar. It opened at 83.25 at the interbank foreign exchange market and was trading at 83.24 in early deals, marking a 5 paise increase over its previous close. This appreciation of the rupee adds to the positive economic indicators for the day.
Today’s market performance reflects a significant shift in investor sentiment, driven by optimistic expectations surrounding the upcoming Lok Sabha election results. With major indices closing in the green and the rupee showing strength, the market ends the week on a high note, bringing a sense of optimism for the coming days.
Investors will be closely watching the political developments and global economic cues as they navigate the market in the upcoming sessions.