Indian stock markets made a strong comeback on Tuesday, rebounding sharply from the previous day’s steep decline. The benchmark indices, Sensex and Nifty, surged significantly, driven by a recovery in Asian markets.
- Sensex: Gained 964.86 points to reach 79,724.26.
- Nifty50: Jumped 290.60 points to settle at 24,346.20.
The broader market, including midcap and smallcap stocks, also witnessed a sharp recovery as volatility eased. Key factors contributing to the market’s rebound include:
- Reassurance from US Central Bank Officials: Statements from US central bank officials helped calm investor nerves after Monday’s sell-off.
- Strong Domestic Investor Support: Domestic Institutional Investors (DIIs) played a crucial role in supporting the market by purchasing stocks worth Rs 9,155 crore.
- Relative Resilience of Indian Market: Compared to global markets, the Indian market experienced a relatively smaller decline.
- Quality Largecaps Remain Steady: Despite the overall volatility, high-quality largecap stocks exhibited stability.
However, experts caution investors about potential market fluctuations due to factors like the unwinding of the Yen carry trade and the overall economic situation. They recommend a cautious approach and focus on quality large-cap stocks for long-term investment.
While the market has recovered significantly, it is essential to monitor global developments and maintain a diversified investment portfolio.
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