Mumbai, August 20: The Indian stock market opened on a positive note on the fourth trading day of the week, buoyed by favorable signals from global markets and a decline in global bond yields. This surge marks a return to growth after seven consecutive sessions of decline.
During this period, the BSE Sensex opened at 77,468.45, up 558.77 points or 0.72% from its previous close of 76,909.68. At one point during the trading day, it reached a high of 77,494.79, reflecting a gain of 0.76%, while it dipped to a low of 77,375.75.
Meanwhile, the NSE Nifty 50 opened at 24,225.45, gaining 147.15 points or 0.61% from its previous close of 24,078.30. This was the highest level during intraday trading, while the lowest point was 24,184.55.
As of the latest updates, the Sensex was trading at 77,442.28, up by 532.60 points or 0.69%, while the Nifty 50 was at 24,199.40, reflecting an increase of 121.10 points or 0.50%.
In broader markets, the Nifty Midcap and Nifty Smallcap indices recorded gains of 0.56% and 0.83%, respectively.
Sector-wise, nearly all Nifty indices were trading in the green. The Nifty IT, Nifty Private Bank, Nifty Consumer Durables, Nifty Media, Nifty Realty, and Nifty FMCG sectors saw the most significant gains. Additionally, there was noticeable buying in mid-small IT, telecom, and metal stocks.
Analysts noted that the market had been under pressure for the past 12 trading sessions. However, technical indicators now suggest a potential short-term recovery. Experts believe that short covering and improved global cues have boosted investor confidence.
According to technical analysis, the Nifty has made a strong comeback from the crucial support level of 24,060. A bullish pattern forming on the four-hour chart has increased the likelihood of recovery in the market.
Experts indicate that if the Nifty holds above the range of 24,200 to 24,260, further gains could be expected, potentially reaching levels between 24,380 and 24,540. Meanwhile, the 24,060 level remains a critical support point. If this level breaks, the Nifty could see a decline down to 23,575.
On the investor activity front, positive signals were also observed. According to provisional data, foreign institutional investors (FIIs) continued their buying spree for the second consecutive trading session, with a net purchase of ₹407 crore on Wednesday. Domestic institutional investors (DIIs) have also remained buyers for the seventh session, investing ₹3,973 crore.
Support from global markets has also been noted. Reports suggest that the U.S. is considering repurchasing long-term Treasury securities, which could help lower borrowing costs. Following this news, a positive atmosphere was observed in global bond and equity markets.
Asian stock markets also showed strength, while U.S. markets closed higher on Wednesday. The S&P 500 index rose by 0.21%, and the Nasdaq gained 0.16%.
Meanwhile, despite tensions between the U.S. and Iran, crude oil prices in international markets remained relatively stable. Brent crude was trading around $92 per barrel, while U.S. West Texas Intermediate (WTI) was close to $84.52 per barrel.
Experts believe that if global bond yields remain subdued and foreign buying continues, the Indian stock market could see further improvements in the near term. However, high crude oil prices and geopolitical situations in West Asia will remain on investors’ radar.
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