Equity benchmark indices found their footing in a march upwards on Thursday, April 18, 2024, correcting a three-day slide as the vibe of resurgence spread through Asian markets. Alongside, heavyweight domestic players State Bank of India and Reliance Industries injected buying fervor into the market.
In what came as a refreshing change to investors, the 30-share BSE Sensex swelled by 310.82 points, setting the early trade bar at 73,254.50, while the NSE Nifty leaped by 122.75 points to find its balance at 22,270.65.
This uptick provided a notable contrast to the dreary performance over the prior three-day period, during which the BSE benchmark withered away by 2,094.47 points, constituting a fall of 2.79 percent. This downturn was halted as various stocks within the Sensex basket showed significant recovery. Names like Power Grid, Mahindra & Mahindra, Bharti Airtel, Larsen & Toubro, Tata Steel, along with the banking titans State Bank of India and Kotak Mahindra Bank, surfaced as the prominent winners of the morning trade.
On the flip side of the coin, some companies found themselves grappling with the undertow of the market’s ebbs and flows. HCL Technologies, Axis Bank, Nestle, Tech Mahindra, Titan Company, and ITC earned the unwelcome tag of laggards as they struggled in the backdrop of the broader market’s gains.
The pulse of positivity echoed through Asian corridors, with major markets like Seoul, Tokyo, Shanghai, and Hong Kong basking in the green glow of positive territory. This congenial atmosphere provided a much-needed backdrop of support, contrary to the dimming lights of Wall Street, which had wrapped up the previous day with losses.
Oil markets, a critical determinant of global economic health, also witnessed Brent crude oil—the global benchmark—strengthening as it notched up by 0.29 percent, finding its price set at USD 87.54 per barrel.
Investor patterns noted by the exodus of Foreign Institutional Investors (FIIs) were also a focal point of the market’s temperature check. According to exchange data, FIIs had a withdrawn stance as they offloaded equities to the tune of ₹4,468.09 crore on April 17.
The stage was set for this rebound after a pause in trade. Stock markets had a quiet Wednesday, given a national holiday for Ram Navami. Prior to this hiatus, the trend had been firmly downwards. The BSE Sensex plummeted 456.10 points, a decline by 0.62 percent to settle at 72,943.68, while the NSE Nifty wasn’t spared, witnessing a dip by 124.60 points or 0.56 percent to conclude at 22,147.90 on Tuesday.
In summary, the trajectory of market indices presented a notable reversal from the preceding days of decline. The enthused buying patterns in significant index majors and optimistic ripples from Asian markets presented a much-needed respite for a market navigating through volatile times. Whether this rally has the legs to sustain beyond the early trade awaits to be seen as investors keep a vigilant watch on global and domestic economic indicators.
