The Indian stock market started the week on a b note on Monday. The BSE Sensex jumped 244 points to reach the level of 80844. Similarly, the NSE Nifty also saw a gain of 65 points and was seen trading at the level of 24630.
The decline seen in the market last week seemed to be put on hold in today's early trade. GIFT Nifty had also given positive signals since morning and was trading above 24680 with a gain of 0.37 percent.
Midcap and Smallcap Stocks Also Gained
Not only large stocks, but midcap and smallcap stocks also saw activity today. The BSE Midcap Index was up 0.43 percent while the Smallcap Index recorded a gain of 0.36 percent. This is an indication that there is widespread positivity in the market and small investors are also benefiting from it.
Efforts to Recover from Last Week's Decline
The market had declined on the last trading day of last week, i.e., August 1st. On that day, the Sensex fell 585 points to close at 80599.91 and the Nifty slipped 203 points to reach 24565.35. At that time, there was more selling pressure in the market, especially due to global uncertainties and the cautious approach of foreign investors.
But at the beginning of this week, the mood of the market seemed to have changed somewhat. Investors breathed a sigh of relief and started buying in large-cap as well as mid-cap stocks.
These Major Stocks Were on the Rise
In today's trading, 23 out of 30 Sensex stocks were seen in the green. Tata Steel saw the highest gain, rising 1.63 percent. Apart from this, Bharat Electronics gained 1.51 percent, Bajaj Finserv 1.11 percent, Asian Paints 1.09 percent and Titan 1.03 percent.
Apart from these, large stocks like Larsen & Toubro, UltraTech Cement, Reliance Industries and HDFC Bank were also seen trading in the green. This gain helped in pulling the market upwards.
Investors are keeping an eye on some important factors today. First of all, the impact of global oil prices is being seen. The recent fluctuations in crude oil prices directly affect the Indian market as well.
The second major factor is fund flow. The direction of the market also depends on how much capital is coming into or being withdrawn from the market by foreign institutional investors (FIIs) and domestic institutional investors (DIIs).
Apart from this, investors are also keeping an eye on the performance of the banking, FMCG and energy sectors. Quarterly results of companies related to these sectors, any kind of policy updates or business deal news can affect the market's movement.
Global Cues Are Also Setting the Tone
Signals from international markets have also affected the movement of the Indian market. Major markets in America, Europe and Asia have also seen some strength in recent days.
Investors have been relieved by the US Federal Reserve's indication of no change in interest rates for the time being. At the same time, some stability has also been seen in China's economic data, which has strengthened Asian markets and its effect has also been seen on India.
The position of the Indian Rupee also affects the market. Today the Rupee appeared somewhat stable against the Dollar. At the same time, there was also a slight decline in the price of Brent crude oil in the international market, which gave relief to investors.
If the Rupee remains b and crude oil prices remain stable, then the domestic market can benefit from it, especially the oil companies and import-based industries.
IT and Pharma Sectors Remained Sluggish
However, even in this strength of the market, the IT and Pharma sectors showed some pressure. Slight weakness was seen in stocks like TCS, Infosys and Wipro. The reason for this is believed to be uncertainty in global demand and fluctuations in the dollar.
In the Pharma sector also, the quarterly results of some selected companies disappointed investors, due to which not much activity was seen in this sector.
Market experts believe that the market is currently getting some support, but in the coming days, many such factors may come to the fore at the domestic and global level, which will determine the direction of the market.
Issues such as inflation rate data, the position of foreign investment, interest rate policies and quarterly results of companies will now be in the eyes of investors. These can turn the market's movement upwards or downwards.
Market Remains Active
For now, a positive atmosphere is visible in the market. Sensex and Nifty are both trading with gains. Investors' interest remains in midcap and smallcap stocks as well.
However, whether this trend of the market will remain permanent or not will depend on many other factors. But the gains seen in early trade have definitely given some relief to investors.
