Sensex Jumps 405 Points, Nifty Settles Near 19,550; Infibeam Avenues and Edelweiss Surge Up to 13%

 

In a significant recovery, the Indian stock market witnessed a substantial surge as buying in heavyweight sectors and positive global cues drove investor sentiment. The BSE Sensex surged by 405.53 points, closing at 65,631.57, while the NSE Nifty50 experienced a slight decline of 109.65 points, settling at 19,545.75. Although the broader markets underperformed, with the BSE midcap index remaining steady and the BSE smallcap index rising modestly, the fear gauge India VIX dropped by around 6% to 10.96 levels.

The market rally gained momentum due to various factors including a recovery in global markets, a sharp drop in international crude oil prices, and a steady trend in US bond yields. As a result, investors showed increased interest in sectors such as information technology (IT), banking, automobile, and capital goods. However, selective profit-taking limited the overall gains.

The Nifty media index witnessed a gain of around 2%, followed by the Nifty IT and auto indices, which added approximately 1% each. Other notable gainers included the Nifty financial services and consumer durable indices. On the other hand, the Nifty PSU Bank index experienced a slight decline, while sectors like pharma, metal, healthcare, and FMCG settled in the red zone.

Among the top gainers in the Nifty50 pack were Bajaj Auto and Larsen & Toubro, each gaining more than 2%. Likewise, Mahindra & Mahindra and Titan Company also posted similar gains. Additionally, Tata Consultancy Services, Maruti Suzuki, Eicher Motors, Infosys, Hero MotoCorp, ICICI Bank, and Asian Paints registered gains of approximately 1% each. Conversely, Power Grid witnessed a decline of over 1%, and Hindalco, NTPC, Cipla, Nestle India, Tata Consumer Products, HCL Technologies, and Divis Laboratories were among the other top losers.

The positive market sentiment was supported by favorable Purchasing Managers' Index (PMI) data and a correction in crude oil prices. Furthermore, the expectation of a hold on interest rates by the Reserve Bank of India (RBI) added to the optimism. The reduction in foreign institutional investors (FIIs) selling in the banking and IT sectors also contributed to the rebound.

In summary, the Indian stock market staged a remarkable recovery, bolstered by positive global cues and strong performances in heavyweight sectors. While the Nifty settled near the 19,550 mark, gains were witnessed in sectors such as IT, banking, and auto. The market sentiment was further supported by positive PMI data and the correction in crude oil prices.