Today's stock market: On Monday, December 23, the benchmarks of the Indian stock market, the Sensex and the Nifty 50, finished the five-day losing skid higher.
Stock market today: The Indian stock market benchmarks, the Sensex and the Nifty 50, saw a relief rally as they surged more than 1% in intraday trade on Monday, December 23, following a steep fall of almost 5% over the previous five days.After closing at 78,041.59, the Sensex began at 78,488.64 and surged up to 877 points, or more than 1%, to reach 78,918.12. After closing at 23,587.50, the Nifty 50 began at 23,738.20 and surged about 300 points, or more than 1%, to reach the intraday high.
But advances were cut by the indices. The Nifty 50 closed 166 points, or 0.70 percent, higher at 23,753.45, while the Sensex closed 499 points, or 0.64 percent, higher at 78,540.17.
The smallcap and midcap sectors did not do well. While the BSE Smallcap index fell 0.60 percent, the Midcap index increased 0.10 percent.
Investors gained more than ₹1 lakh crore in a single session as the total market capitalization of the BSE-listed companies surged to ₹442 lakh crore from ₹441 lakh crore in the previous session.
Today's sectoral indexes
On Monday, a number of sectoral indicators recorded robust advances. The indices for Nifty Bank, PSU Bank, and Realty all increased by more than 1%. The indices for FMCG, consumer durables, metal, oil and gas, Nifty Private Bank, and financial services all increased by about 1%.
What motivated today's Indian stock market?
Let's examine the five main drivers of the Indian stock market's rise:
1. Purchasing value
According to experts, investors are still optimistic about the medium- to long-term prospects of the Indian stock market, which is why they are purchasing large-cap stocks following the recent downturn.
Investors begin searching for cheap stocks when there is a substantial correction in the stock market. These equities are trading below their fair value despite having great fundamentals, like steady cash flow, little debt, strong earnings, and promising growth prospects.
The smallcap and midcap sectors did not do well. While the BSE Smallcap index fell 0.60 percent, the Midcap index increased 0.10 percent.
Investors gained more than ₹1 lakh crore in a single session as the total market capitalization of the BSE-listed companies surged to ₹442 lakh crore from ₹441 lakh crore in the previous session.
Today's sectoral indexes
On Monday, a number of sectoral indicators recorded robust advances. The indices for Nifty Bank, PSU Bank, and Realty all increased by more than 1%. The indices for FMCG, consumer durables, metal, oil and gas, Nifty Private Bank, and financial services all increased by about 1%.
What motivated today's Indian stock market?
Let's examine the five main drivers of the Indian stock market's rise:
1. Purchasing value
According to experts, investors are still optimistic about the medium- to long-term prospects of the Indian stock market, which is why they are purchasing large-cap stocks following the recent downturn.
Investors begin searching for cheap stocks when there is a substantial correction in the stock market. These equities are trading below their fair value despite having great fundamentals, like steady cash flow, little debt, strong earnings, and promising growth prospects.
2. Constructive global cues
Sentiment at home is influenced by significant advances in Wall Street and other important Asian markets. Softer US inflation data may have played a major role in the rebound in both the US and Asian markets.
According to Reuters, "a measure underlying inflation recorded its smallest increase in six months last month, and the Commerce Department's report on Friday showed that prices rose moderately."
Investors were also delighted that a government shutdown in the US had been avoided.
Early on Saturday, the US Congress passed spending legislation that will prevent a destabilizing government closure before the Christmas holiday season, according to Reuters.
3. Astute investments in large stocks
On Monday, gains in a few heavyweight equities raised equity benchmarks. The advances in the Sensex and the Nifty 50 were mostly attributed to the 1-2 percent increases in a few heavyweight firms, including ITC, HDFC Bank, and Reliance Industries.
As everything was going on, the Nifty Bank index surged more than 1% to close at 51,317.60, with 11 stocks rising and one stock—Kotak Mahindra Bank—falling by a mere 0.09 percent. Gains in banking stocks helped the leading indices rebound overall because they are heavily weighted in the Sensex and Nifty.
Sentiment at home is influenced by significant advances in Wall Street and other important Asian markets. Softer US inflation data may have played a major role in the rebound in both the US and Asian markets.
According to Reuters, "a measure underlying inflation recorded its smallest increase in six months last month, and the Commerce Department's report on Friday showed that prices rose moderately."
Investors were also delighted that a government shutdown in the US had been avoided.
Early on Saturday, the US Congress passed spending legislation that will prevent a destabilizing government closure before the Christmas holiday season, according to Reuters.
3. Astute investments in large stocks
On Monday, gains in a few heavyweight equities raised equity benchmarks. The advances in the Sensex and the Nifty 50 were mostly attributed to the 1-2 percent increases in a few heavyweight firms, including ITC, HDFC Bank, and Reliance Industries.
As everything was going on, the Nifty Bank index surged more than 1% to close at 51,317.60, with 11 stocks rising and one stock—Kotak Mahindra Bank—falling by a mere 0.09 percent. Gains in banking stocks helped the leading indices rebound overall because they are heavily weighted in the Sensex and Nifty.
4. Expectations for policy backing
According to experts, the market has taken in the US Fed's updated interest rate outlook and is now seeking policy support from the Union Budget 2025 and the Reserve Bank of India's monetary policy.
"There's hope that the government would spend more money on major projects. Since August, the government has been acting in that manner. Additionally, given the new RBI Governor, we anticipate some sops in the budget, which may be followed by a 25 basis point rate drop by the RBI's Monetary Policy Committee (MPC). According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, "these two expectations appear to have somewhat improved the sentiments."
"The updated rate-cut expectation from the US Fed has been processed. The upside is that there may be more shocks because the most recent inflation data were lower than anticipated. If this downward trend persists, the Fed may reduce interest rates three times rather than just twice. "There is a significant unexpected component," Vijayakumar stated.
5. Technical aspects
Nifty was predicted to try a pullback above the 200-day SMA (simple moving average) around 23,837, according to Anand James, Chief Market Strategist at Geojit Financial Services, who noted that low volumes were a threat for the final week of the year.
The Nifty 50 created an inside body candle on the daily charts, indicating indecision between the bulls and bears, according to Shrikant Chouhan, head of equities research at Kotak Securities.
"Level-based trading would be the best approach for day traders because we think non-directional activity would probably persist in the near future. Currently, traders can use 23,650 and 23,550 as important support zones, and the 200-day SMA or 23,850 and 24,000 as important.
According to experts, the market has taken in the US Fed's updated interest rate outlook and is now seeking policy support from the Union Budget 2025 and the Reserve Bank of India's monetary policy.
"There's hope that the government would spend more money on major projects. Since August, the government has been acting in that manner. Additionally, given the new RBI Governor, we anticipate some sops in the budget, which may be followed by a 25 basis point rate drop by the RBI's Monetary Policy Committee (MPC). According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, "these two expectations appear to have somewhat improved the sentiments."
"The updated rate-cut expectation from the US Fed has been processed. The upside is that there may be more shocks because the most recent inflation data were lower than anticipated. If this downward trend persists, the Fed may reduce interest rates three times rather than just twice. "There is a significant unexpected component," Vijayakumar stated.
5. Technical aspects
Nifty was predicted to try a pullback above the 200-day SMA (simple moving average) around 23,837, according to Anand James, Chief Market Strategist at Geojit Financial Services, who noted that low volumes were a threat for the final week of the year.
The Nifty 50 created an inside body candle on the daily charts, indicating indecision between the bulls and bears, according to Shrikant Chouhan, head of equities research at Kotak Securities.
"Level-based trading would be the best approach for day traders because we think non-directional activity would probably persist in the near future. Currently, traders can use 23,650 and 23,550 as important support zones, and the 200-day SMA or 23,850 and 24,000 as important.
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