Mumbai Stock Market Bounces Back: Nifty and Sensex Close Higher
The stock market in Mumbai, India, ended on a positive note on Friday, recovering from early losses. The Nifty 50 closed at 24,854.05, gaining 104 points or 0.42%, while the Sensex BSE rose by 218.14 points or 0.27% to 81,224.75.
Throughout the day, most sectors on the National Stock Exchange (NSE) traded positively, except for FMCG, IT, and oil and gas. The IT sector was the biggest loser. However, the Nifty Private Bank, Nifty Metal, and Nifty Bank indices showed gains.
Vinod Nair, Head of Research at Geojit Financial Services, explained that the market rebounded from oversold levels due to selective buying in financials, auto, and metals stocks. Positive initial results from private banks and better-than-expected growth in China’s Q3 GDP also contributed to the market’s performance. Additionally, rate cuts by the European Central Bank (ECB) supported rate-sensitive stocks.
Shriram Subramanian, Founder and MD of InGovern Research Services, noted that foreign investors have been selling throughout October, but domestic investors have absorbed the pressure. The Hyundai IPO was a significant event this week, though it received a lukewarm response.
At the end of the day, Axis Bank, Wipro, Eicher Motors, ICICI Bank, and Shriram Finance were the top gainers, while Infosys, Asian Paints, Britannia, Nestle India, and Tech Mahindra were the top losers. Despite the initial downturn due to foreign investor selling, experts are optimistic about a recovery in the coming weeks.
In the Nifty 50 list, 33 stocks advanced, while 17 stocks declined during the trading session.
Doubts Revealed
Mumbai Stock Market -: The Mumbai Stock Market is a place where people buy and sell shares of companies. It’s like a big marketplace for stocks in India.
Nifty 50 -: Nifty 50 is a list of 50 important companies in India whose stocks are traded on the stock market. It helps people understand how the market is doing.
Sensex BSE -: Sensex BSE is an index that shows the performance of 30 major companies listed on the Bombay Stock Exchange (BSE). It helps track the overall health of the stock market.
FMCG -: FMCG stands for Fast-Moving Consumer Goods. These are products that sell quickly, like food and toiletries.
IT -: IT stands for Information Technology. It includes companies that work with computers, software, and technology services.
GDP -: GDP stands for Gross Domestic Product. It measures the total value of goods and services produced in a country, showing how well the economy is doing.
Foreign investor selling -: Foreign investor selling means people from other countries are selling their shares in the Indian stock market. This can affect the market’s performance.
Domestic investors -: Domestic investors are people or companies from India who invest in the stock market. They can help stabilize the market when foreign investors sell their shares.
