Indian Stock Market Rebounds After Sharp Drop
After a significant downturn on Monday, the Indian stock market opened in green on Tuesday, bringing hope to investors. The Nifty50 at the National Stock Exchange (NSE) rose by 290.60 points, reaching 24,189.85, while the BSE Sensex increased by 949.21 points to trade at 79,708.61.
Various sectoral stocks, including Bank, Auto, Financial Services, FMCG, IT, Media, Metal, Pharma, PSU Bank, Private Bank, Realty, Healthcare, Consumer Durables, Oil, and Gas, opened in green.
On Monday, Foreign Institutional Investors sold shares worth Rs 10,074 crore, while domestic investors bought shares worth Rs 9,156 crore. Market expert Ajay Bagga explained that the recent sell-off was due to a combination of factors, including the BOJ rate hike and Yen appreciation, but he expressed optimism about the market’s recovery.
Asian markets also showed positive trends, with Japan’s Nikkei 225 rebounding by 10.5 percent and South Korea’s Kospi rising over 4 percent. US stock futures were up as well.
On Monday, the Sensex had dropped by 2,222.55 points to 78,759.40, and the Nifty 50 had fallen by 662.10 points to 24,055.60. The recent all-time high of 25,078 reached on August 1 could signal a bearish short-term trend, with the next support level anticipated at around 23,625 and immediate resistance at 24,250.
Globally, markets reacted to the Sahm Rule being triggered, predicting a US recession as unemployment reached 4.3 percent.
Doubts Revealed
Nifty50 -: Nifty50 is a stock market index in India. It shows the performance of 50 major companies listed on the National Stock Exchange (NSE).
Sensex -: Sensex is another stock market index in India. It tracks the performance of 30 well-established companies listed on the Bombay Stock Exchange (BSE).
NSE -: NSE stands for National Stock Exchange. It is one of the largest stock exchanges in India where people buy and sell shares of companies.
BSE -: BSE stands for Bombay Stock Exchange. It is the oldest stock exchange in Asia, located in Mumbai, where people trade shares of companies.
Sectoral stocks -: Sectoral stocks are shares of companies that belong to a specific industry or sector, like technology, healthcare, or finance.
Foreign Institutional Investors -: Foreign Institutional Investors are people or organizations from other countries who invest money in Indian companies.
Domestic investors -: Domestic investors are people or organizations from India who invest money in Indian companies.
Ajay Bagga -: Ajay Bagga is a market expert who knows a lot about the stock market and gives advice on investments.
Asian markets -: Asian markets refer to stock markets in Asian countries like Japan, China, and South Korea where people trade shares of companies.
US stock futures -: US stock futures are contracts that predict the future prices of stocks in the United States. They help investors guess how the market will perform.
