Stock Market: There has been a recovery in the stock market.. but will this rise continue?

Stock Market Today: After witnessing four consecutive days of selling pressure, Indian markets gained significantly in the trading session on Tuesday, January 14. Nifty 50 closed 0.39 per cent higher at 23,176, while Sensex closed 0.22 per cent higher at 76,499. Mid-cap and small-cap shares, which were under bearish pressure in recent sessions, also remained in profit.

Wide market too..

The Nifty Small Cap 100 index closed 1.98 per cent higher at 17,257, while the Nifty Mid Cap 100 index closed 2.45 per cent higher at 53,676. The broader market also outperformed in line with the frontline indices. The market gained momentum today due to gains in banking, auto and metal stocks. Besides, Adani Group shares closed with gains on speculation over fund raising plans.

The reason for this rally..

A strong recovery in the Indian rupee, falling crude oil prices, domestic inflation hitting a four-month low, low value buying, positive international cues especially from China helped the market close on a positive note. However, whether this recovery will continue in the coming trading sessions will depend on US inflation data. The Consumer Price Index (CPI) report will be released on Wednesday.

short term recovery

Commenting on today’s market performance, Prashant Tapse, Senior Vice President (Research), Mehta Equities, said, “Short-term correction is normal as the market has been trending lower for the last few sessions. While buying in banking, telecom, auto, power and metal stocks contributed to the positive sentiment, broader equity markets also performed well with mid and small cap stocks gaining heavily. However, rupee’s fresh low and continued inflow of FII funds will be the main hindrances to the market’s recovery,” he explained.

Metals shine, IT lags

Among sectoral performers on Tuesday, Nifty Metal was the top gainer, rising 4 per cent, with 14 stocks out of 15 sectors in the index closing in gains. Nifty PSU Bank gained 3.28 per cent while all 12 components of the index ended positive. IOB was the top gainer with a gain of 18.3 per cent, while other stocks like Central Bank, UCO Bank, Punjab & Sind Bank and Bank of Maharashtra ended with gains of over 10 per cent. Other sectoral indices including Nifty Energy, Nifty Media and Nifty Auto ended trading between 2 per cent and 3 per cent higher. On the other hand, Nifty IT index fell by 1.89 per cent due to fall in HCL Technologies shares, while Nifty FMCG index also ended the session with a fall of 1.35 per cent.

Adani Stocks Sparks

Adani Group shares closed the trading session with huge gains on Tuesday on reports of fund raising plans. In the list of top performers, Adani Power closed 20 per cent higher at Rs 539.9, while Adani Green Energy and Adani Energy Solutions gained 13.5 per cent and 12.2 per cent respectively. Other Adani Group stocks such as Adani Enterprises, Adani Total Gas, Adani Ports and SEZ also ended with gains of over 5 per cent. NDTV, ACC, Ambuja Cements and Sanghi Industries gained 4 per cent to 7 per cent.

Reference, These opinions and recommendations are those of the individual analyst. these are ht telugu Opinions are not represented. We recommend investors to consult certified professionals before making any investment decisions.