Indian Stock Markets Surge as Sensex and Nifty Close Higher
New Delhi, India – Indian stock markets started Friday’s session with a strong rally as buyers returned to both the Nifty and Sensex indices. The indices kept their gains intact and closed the week handsomely higher. Sensex jumped over 800 points to 79,705.91 points, while Nifty rose 250 points to 24,367 points. All Nifty sectoral indices were in the green, with Nifty media, Nifty PSU bank, Nifty IT, and Nifty auto rising the most, according to NSE data.
Ajit Mishra, SVP of Research at Religare Broking Ltd, said, “The markets started strong, gaining over a percent, buoyed by positive global cues… Global volatility is leading to erratic market swings, keeping traders on edge. We recommend a cautious approach until Nifty decisively closes above the 24,500 level. In the meantime, certain sectors and themes are showing resilience, so traders should adjust their positions accordingly.”
Vinod Nair, Head of Research at Geojit Financial Services, added, “Positive US jobless claims data eased the fears of recession and provided a favorable broader market reaction. The IT index outperformed in expectation of improved spending. Though the sentiment is gaining traction, a lack of fresh triggers and subdued earnings will be a deterrent to higher valuation. To safeguard the sentiment, investors are advised to shift their focus from growth stocks to value stocks.”
Global markets also reflected optimism, with US stocks surging on Thursday after better-than-expected jobless claims. On Thursday, the domestic indices fell following the Reserve Bank of India’s (RBI) monetary policy announcement. The Sensex dropped 581.79 points to 78,886.22, while the Nifty 50 closed 180.50 points lower, or 0.74 per cent, at 24,117.00.
Going ahead, inflation data for July will be widely eyed, scheduled to be released early next week. India’s overall retail inflation rate hardened in June, taking a departure from the moderation it witnessed in the past few months, pushed by rising food prices. The retail inflation for all segments of food–cement and products, meat and fish, egg, milk and products, oils and fats, fruits, vegetables in particular, pulses and products, sugar, spices, prepared snacks, and sweets–rose month-on-month. Rising food prices continued to be a headache for Indian consumers, with the inflation rate in the food segment almost doubling year-on-year in June. Food inflation almost doubled to 8.36 per cent last month, versus 4.63 per cent reported in the same month of 2023, official data showed.
Doubts Revealed
Sensex -: Sensex is a stock market index in India that shows how the shares of 30 big companies are doing. It’s like a report card for these companies.
Nifty -: Nifty is another stock market index in India, but it tracks 50 big companies. It helps people understand how the stock market is performing.
Sectoral indices -: Sectoral indices are groups of stocks from the same industry, like IT or auto. They show how that particular industry is doing in the stock market.
PSU bank -: PSU banks are Public Sector Undertaking banks, which means they are owned by the government. Examples include State Bank of India and Punjab National Bank.
IT sector -: The IT sector includes companies that work with technology and computers, like Infosys and TCS.
Auto sector -: The auto sector includes companies that make vehicles, like cars and bikes. Examples are Tata Motors and Maruti Suzuki.
Global volatility -: Global volatility means that the stock markets around the world are unstable and can change quickly. This can affect the Indian stock market too.
US jobless claims data -: US jobless claims data shows how many people in the United States are asking for help because they don’t have jobs. If fewer people are asking for help, it means the economy is doing better.
Recession -: A recession is when the economy is doing very badly for a long time. People lose jobs, and businesses make less money.
Inflation -: Inflation means that the prices of things like food and clothes are going up. This makes it more expensive for people to buy what they need.