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Stock Market Closing: After a sharp decline in the morning, Indian stock markets made a strong recovery in afternoon trade and turned positive.
The BSE Sensex, after hitting an intraday high of 74,207.46, ended the session at 74,106.85, up 787.30 points or 1.07 per cent. The NSE Nifty50 settled at 22,968.25, up 255.15 points or 1.12 per cent. During the day Nifty50 swung between 22,998.35 and 22,542.95. Sensex and Nifty opened almost flat today. The BSE Sensex started at 73,477.53, while the Nifty 50 opened at 22,780.30.
Reasons behind surge
- Hopes of easing geopolitical tensions lifted market sentiment after reports indicated progress toward a potential ceasefire between the US and Iran. According to a Reuters report citing sources, a framework to end hostilities has been shared with both sides and could take effect soon, potentially reopening the strategically important Strait of Hormuz.
- The domestic currency also lent support to equities. The rupee strengthened by 39 paise to 92.79 against the US dollar after the Reserve Bank of India tightened rules to curb speculative trading by capping banks’ net open positions at $100 million.
- Banking stocks emerged as key drivers of the rally, witnessing strong buying after recent corrections made valuations more attractive. Gains were led by PSU banks, with stocks such as Bank of Maharashtra, Bank of India, and Bank of Baroda rising sharply.
Stock Market this week
The domestic stock market is expected to remain volatile this week as investors track the Reserve Bank's monetary policy decision, key global macroeconomic data and the impact of the West Asia conflict, PTI reported quoting analysts. Movements in crude oil prices and foreign fund flows will also influence domestic equities, analysts added.
Vinod Nair, Head of Research, Geojit Investments Ltd, said the RBI's Monetary Policy Committee (MPC) meeting will command centre stage domestically, with investors closely watching the central bank's stance on inflation and growth, according to PTI.
"A rate pause is near-certain consensus, the central bank walks a tightrope between crude-driven inflation risks and a four-year low Manufacturing PMI signalling a softening growth impulse. The governor's commentary on the rate cycle trajectory and FY27 projections will be closely monitored.
"Globally, the US March CPI reading will carry significant importance, as it buries residual Fed rate-cut hopes, strengthens the dollar and tightens financial conditions for emerging markets, including India," Nair said.
He noted that geopolitical developments in West Asia will remain the overarching factor influencing market sentiment, as per PTI.
"Indian markets return after a three-day gap and remain acutely vulnerable to weekend war developments, with crude trajectory and any credible ceasefire signal being the decisive variable that could either trigger a sharp relief rally or extend the current sell-on-rise mode," Nair added.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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