Gain in US and Japanese markets fuel Indian stocks recovery
MUMBAI: After experiencing a significant decline of 3 per cent the previous day, the stock market indices Sensex and Nifty are showing early signs of recovery on Tuesday, August 6. Both indices opened approximately 1 percent higher.
The strong rebound in the Indian stock markets is largely attributed to favorable global cues. US stock futures climbed nearly 1 per cent after major central banks indicated their readiness to take swift action to support both the economy and financial markets. Additionally, a 10 per cent surge in Japan’s Nikkei index further fueled the recovery of Indian markets.
The notable shift in the fear gauge yesterday also reflected the market’s current uncertainty for the near term.
Sensex and Nifty gain 1% each
The BSE Sensex began the day at 78,981.97, up from the previous day’s close of 78,769.08. As trading progressed, the index gained 1 per cent, reaching 79,852.08 points.
Similarly, the NSE Nifty50 opened at 24,189.85, compared to its previous close of 24,055.60. It climbed over 1 per cent, reclaiming the level of 24,382.60.
On the NSE, Tata Motors, Larsen & Toubro, and ONGC led the gains, while SBI Life, Apollo Hospitals, and Nestle India saw declines. On the BSE, Tata Motors, Adani Ports, and L&T surged up to 3 per cent, with Maruti, Tata Steel, and JSW Steel rising around 2 per cent each.
MidCap and SmallCap move up
The broader markets also rebounded, with the MidCap index rising by 1.86 per cent and the SmallCap index surging by 2.10 per cent. Sector-wise, all indices were trading in the green, with Nifty Realty, Nifty Metal, Nifty Media, and Nifty IT leading the charts.
The overall market capitalization of firms listed on the BSE increased to nearly Rs449 lakh crore, up from approximately Rs442 lakh crore in the previous session, resulting in an increase of about Rs7 lakh crore in investor wealth within the first half-hour of trade.
