Sensex, Nifty Bounce Back to End 8-Day Losing Streak
The Indian benchmark equity indices, Sensex and Nifty, on Monday reversed their early losses to end their eight-day losing streak, and closed the intra-day trading session in the positive territory. This sudden turnaround in the market’s fortunes was a welcome respite for investors who had been on edge due to the prolonged decline in the indices.
The Sensex, which had been on a downward spiral for the past eight days, finally found some respite on Monday. It finished the day’s trading session at 75,996.86, up by 57.65 points or 0.08% from its previous close. The index had touched a low of 75,294.76 during the day, but managed to stage a remarkable comeback to hit a high of 76,041.96.
The Nifty50, which is a widely followed index of the National Stock Exchange (NSE), also ended the day’s trading session in the positive territory. It closed at 22,864.25, up by 16.45 points or 0.07% from its previous close.
The bounce back of the Sensex and Nifty was led by gains in the banking, financial, and consumer durables sectors. Shares of private sector lenders such as HDFC Bank, ICICI Bank, and Axis Bank rallied, while those of state-run lenders such as State Bank of India and Bank of Baroda also saw significant gains.
The rebound in the market was also supported by gains in the consumer durables sector, with shares of companies such as Hindustan Unilever, ITC, and Titan Company rising. The IT sector also saw some gains, with shares of companies such as Infosys and TCS rising.
Despite the bounce back, market analysts believe that the recent trend of the Sensex and Nifty is still bearish. The indices have been under pressure due to a range of factors, including global economic uncertainty, rising crude oil prices, and concerns over the impact of the COVID-19 pandemic on the economy.
“The recent decline in the Sensex and Nifty is a correction that was long overdue,” said Ramesh Vaswani, a market analyst. “The indices have been overbought for some time, and the recent decline is a sign of a healthy correction. However, investors should not get carried away by the recent bounce back, and should continue to exercise caution while making investment decisions.”
The Sensex had been on a downward spiral for the past eight days, during which it had lost over 1,600 points. The Nifty50 had also seen a similar decline, losing over 500 points during the same period.
The recent decline in the Sensex and Nifty had been attributed to a range of factors, including global economic uncertainty, rising crude oil prices, and concerns over the impact of the COVID-19 pandemic on the economy. The pandemic has had a significant impact on the global economy, with many countries experiencing lockdowns and restrictions on movement.
In addition, the recent increase in crude oil prices has also put pressure on the Sensex and Nifty. Crude oil prices had risen sharply in recent weeks, driven by concerns over supply disruptions and rising demand. This has led to a sharp increase in inflation, which has had a negative impact on the stock market.
However, despite the recent decline, market analysts believe that the Indian economy is still on a strong footing. The country’s GDP growth rate has been steadily increasing over the past few years, and the government has implemented a range of reforms to boost economic growth.
“The Indian economy is still on a strong footing, and the recent decline in the Sensex and Nifty is just a correction,” said Vaswani. “The government has implemented a range of reforms to boost economic growth, and the country’s GDP growth rate has been steadily increasing. Investors should continue to exercise caution, but there are still many opportunities to make money in the market.”
In conclusion, the Sensex and Nifty’s bounce back to end their eight-day losing streak is a welcome respite for investors. However, market analysts believe that the recent trend is still bearish, and investors should continue to exercise caution while making investment decisions.
News Source:
https://investmentguruindia.com/newsdetail/sensex-nifty-bounce-back-to-end-8-day-losing-streak146075
