Both the benchmark indices finished trading in style with strong rally in the last trading session. Having started the day on a flat note, the markets witnessed an increase in buying interest across various heavyweights.
While the Sensex jumped by over 900 points to close higher on the BSE, the Nifty climbed above the 24,000 mark.
The broader based buying helped in pulling the markets up
Buying was witnessed across sectors like banking, financial services and IT which helped the markets gain the ground. The heavyweight stocks from these segments were responsible for the up-movement seen in the indices.
The large-cap stocks was a primary factor behind the rally seen as the investors came to the market with fresh buying and many of the blue-chip stocks gave handsome returns thereby helping the indices recoup their earlier losses.
Banking & Financial Stocks Spearhead the rally
Banking & financial stocks contributed heavily to the rise in the market. Large public and private sector banks & financial institutions were seen acquiring aggressively by investors.
These stocks are normally heavy on indices like the Sensex & Nifty, and their performance will determine the market trend. This sector’s rise contributed to the market trend in the session.
Also aided by IT stocks
The IT stocks too did give the market a lift. A few of the IT stocks registered gains and the sentiment for the IT pack became optimistic. IT stocks usually respond to global cues, currency fluctuations, prospects of international demand for IT services etc. Optimism on the above factors tends to trigger the buying in the tech pack.
Market sentiment strengthens
Market sentiment turned positive over the course of the day as investors seemed to be gaining more conviction. The rebound suggests that investors have not yet lost their willingness to buy the dip and cushion the prices. ” Such recoveries tend to happen after short-term volatility, said the analysts. They say that when they have faith in the fundamentals, they use the prices as opportunities to acquire stocks.”
Nifty Above 24,000: A Psychological Trigger point
The Nifty moving back above 24,000 is important on the market’s perspective. Round numbers are mostly used by the market participants and investors as a psychological level. If an index moves above any level of round figure, then the confidence increases and it induces more buying into the market.
What investors to look out for going ahead.
Investors will be tracking global markets, earnings reports, inflation numbers and central bank signals going forward. The aforementioned trends will have an impact on investor sentiments and market direction over the coming trading sessions.
For the moment, the upbeat tone on Sensex and Nifty clearly suggests a renewed sense of confidence in the Indian markets post its recent rough patch.
A gain of 919 on the Sensex and Nifty crossing 24,000 meant that the trading session was marked by the upbeat sentiment as investors seemed to have regained confidence.
