Mumbai, March 5
After facing a prolonged 10-session losing streak, the Indian stock market staged a sharp recovery on Wednesday, witnessing strong buying sentiments in the closing session.
The Sensex surged 740.30 points, or 1.02 per cent, to close at 73,730.23, while the Nifty jumped 250.00 points, or 1.13 per cent, to end at 22,332.65.
Out of the Nifty 50 companies, 46 closed in the green, while only four ended in losses, signaling a broad-based recovery. Among the top gainers were Adani Ports, Tata Steel, Adani Enterprises, Power Grid, and M&M, while Bajaj Finance, IndusInd Bank, HDFC Bank, and Shriram Finance were the major laggards of the day.
Vikram Kasat, Head - Advisory, PL Capital - Prabhudas Lilladher, noted, "After its extended losing streak, the Nifty rebounded on Wednesday, tracking gains in Asian markets despite persistent global trade tensions. The rupee appreciated by 9 paise to 87.10 against the U.S. dollar, while crude oil prices declined, easing inflation concerns."
Oil prices continued their downward trend for the third straight session as concerns over global growth and OPEC+'s decision to increase production in April weighed on sentiment.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, stated, "After a long correction, the market successfully cleared the 22,200/73200 resistance zone today, and post-breakout, the positive momentum intensified. A long bullish candle and a promising reversal formation on the daily charts indicate a further uptrend from the current levels."
The market's strong rebound offers a much-needed relief to investors after a prolonged correction phase. While global uncertainties persist, the easing of crude oil prices and technical breakout signals indicate a potential shift in sentiment.
Going forward, market participants will closely watch FIIs' activity, global trade tensions, and domestic economic indicators to gauge the sustainability of this recovery.
- ANI