Sensex Gains 482 Points, Nifty Closes Above 22,750 Amid Recovery
Indian stock markets rebounded on Monday, ending a four-day decline as investors capitalized on lower stock prices.
BSE Sensex rose by 482.92 points to close at 73,606.75.
Nifty increased by 153.20 points, finishing at 22,753.20.
Foreign institutional investors purchased equities worth Rs 887.65 crore on Friday.
On Monday, the Indian stock market experienced a significant rebound, with both the BSE Sensex and NSE Nifty recovering from early losses. The Sensex closed at 73,606.75, marking an increase of 482.92 points or 0.66 percent, while the Nifty ended at 22,753.20, up 153.20 points or 0.68 percent. This recovery came after four consecutive days of declines, driven by investor interest in undervalued stocks.
The previous week had seen the domestic markets decline, influenced by rising crude oil prices and concerns regarding inflation and corporate earnings. The Nifty had dropped by 2.4 percent, and the Sensex fell by 2.2 percent. Investors seized the opportunity to buy stocks that had been significantly marked down, leading to the market's recovery on Monday.
Crude oil prices played a pivotal role in market sentiment. Brent crude futures traded around USD 114.5 per barrel, down from a recent high of USD 117. However, geopolitical tensions, particularly ongoing attacks in Saudi Arabia, continued to raise concerns about oil supply stability. Additionally, foreign institutional investors showed renewed interest, purchasing equities worth Rs 887.65 crore on Friday, despite having withdrawn Rs 48,056 crore from Indian stocks earlier in October.
Global market cues also contributed positively to the Indian markets. Asian indices, including Hong Kong's Hang Seng, were trading positively, and US stock futures indicated a strong opening for Wall Street. This global optimism provided a favorable backdrop for the Indian markets, encouraging local investors to engage in buying.
Looking ahead, analysts suggest that the Nifty index faces critical resistance at the 22,800 level, while 22,500 may serve as immediate support. A decisive movement above 22,800 could signal further recovery towards the psychological 23,000 mark. However, if the index falls below 22,500, it may weaken the current recovery trend. Investors are advised to monitor these levels closely as market dynamics evolve.
