New Delhi: After recovering from the post-budget losses, the Indian stock market closed in green for the first time this week after five consecutive trading day’s losses.
The Sensex closed in the green territory at 81,332.72, up 1,292.92 points, or 1.62 per cent while the Nifty closed at 24,834.85 up 428.75 points or 1.76 per cent, after touching an all-time high of 24,853.10 points. All sectors of the market closed in green today.
Indices saw significant losses over the past few days because of heavy profit-booking, following the Budget announcement of raising tax on derivatives trading and capital gains. Further, lower-than-expected earnings growth from major banks kept the markets under pressure.
As per the market experts, the much-awaited budget proved to be a non-event for the market, as on the day of the Union Budget announcements on July 23, the stock market experienced significant volatility.
Observing the day’s trading during the day, Ajay Bagga, banking and market expert, said, “Indian markets rallied, with both the broader indices as well as the frontline indices showing an impressive recovery. The Union Budget has been digested and now the focus is on the India growth story as well as the global cues. This may be more of a technical bounce, some key levels have to be sustained before we can sound the all-clear. For now, liquidity wins over all walls of worry, and the Bull has got up and is relegating the Bears to the sidelines.”
The stock market opened on friday with a marginal gain but made substaintial gain during the day’s trade.
“On Union Budget Day, the benchmark indices, Nifty and Sensex, initially experienced profit booking, leading to a decline in both indices. However, both indices recovered after volatility settled and the budget was found positive for the long-term economic growth of the country, forming a bullish hammer candlestick pattern on the daily charts,” said Hrishikesh Yedve, AVP Technical and Derivatives Research, Asit C. Mehta Investment Intermediates Ltd.
“There’s a possibility that over the next 10 days, the market could witness a new record high, possibly touching the 25,000 mark before a minor pullback. During this period, core sectors like Energy, Metal, Media, IT, Banks, and Infrastructure are expected to generate the most attention,” said by VLA Ambala, Co-Founder, Stock Market Today (SMT).
Optimistic about the upward trend of the market, Ambala further added during a bullish trend, dips are seen as a potential buying opportunity. “However, after witnessing the high valuation, I advise waiting for a dip to decide the next move. The market already offered such an opportunity on the recent Union Budget Day, when the market revealed lower price rejection below the 24,200 mark,” he stated.
