BSE Sensex closed the day at 71,060.31, up 690 points or 0.98%.Nifty50 ended the day above 21,400 at 21,465.90, up over 220 points or 1.07%
Sensex and Nifty recovered from Tuesday’s decline, driven by buying in index heavyweights, amidst a mixed global market sentiment. The realty index faced notable selling pressure, while India VIX increased by 3%, indicating heightened volatility before tomorrow’s F&O expiry.
According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the significant aspect of yesterday’s market correction lies not in Nifty’s 1.54% drop but in the substantial crashes of 3.15% in Nifty Midcap and 2.87% in Nifty Smallcap indices. The broader market had witnessed unsustainable and excessive valuations, leading to the correction.
The sustained selling by FIIs, who divested equities worth Rs 27,830 crores in the last 5 days, primarily triggered the correction. He highlighted the impact of both market conditions and rumors on the selling trend.
After a significant decline in the previous session, Zee Entertainment shares surged 8% higher amidst concerns about the termination of the merger deal with Sony and the subsequent legal and regulatory implications.
Aditya Gaggar, Director of Progressive Shares, highlighted that the Index has formed an advanced harmonic bullish cypher pattern with a bullish divergence in RSI, suggesting a probable reversal. He stated that sustainability at higher levels will be crucial, with targets set at 21,550 & 21,770, and immediate support at 20,950.
In global markets, Asian shares rose on optimism that Chinese authorities will support its stock markets. Chinese stocks remained mixed, with the blue chip index lower and the Shanghai Composite higher. Hong Kong’s Hang Seng index saw a spike but remained down for the month.
Foreign institutional investors sold Indian shares worth Rs 3,115 crore on Tuesday, while domestic institutional investors bought shares worth Rs 214 crore.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
