Sensex gains 239 points, ends 7-day losing streak
The benchmark equity indices, BSE Sensex and NSE Nifty50, ended their seven-day losing streak to settle in the positive territory. During the intraday trade, BSE Sensex gained 1,112.64 points, or 1.43 per cent, to hit an intraday high of 78,451.65 levels and finally settled at 77,578.38 (0.31 per cent), adding 239.38 points.
On the other hand, Nifty50 rose 1.39 per cent, or 326.85 points, to an intraday high of 23,780.65. It settled at 23,518.50, up 64.70 points or 0.28 per cent from its previous close. As the indices ended their losing streak, experts attributed the rise to several factors.
Maharashtra elections
The indices staged a strong rebound ahead of the Maharashtra Assembly elections. The elections in Maharashtra are crucial and could affect the stock market because the state is one of India’s most industrialised, and makes a substantial contribution to the nation’s GDP. Market expansion can be fuelled by a clear mandate for a business-friendly government that will increase investor confidence and draw in investments.
“Stock market sentiment can be influenced by state elections, which are sometimes regarded as a gauge of the nation’s attitude. Mumbai, India’s financial centre, is located in Maharashtra. Although the elections in Maharashtra are a significant event for the stock market, market performance is not solely determined by them,” said Vishnu Kant Upadhyay, AVP (Research and Advisory), Master Capital Services Ltd.
Strength in banking
and IT heavyweights
Today’s gains were primarily driven by the strength in banking and IT heavyweights. From a technical perspective, market sentiment remains subdued. This short-covering rally is likely to remain fragile unless prices convincingly move above the 24,000 level.
FII selling in a slow lane
Analysts are of the view the market ended in green as foreign institutional investors (FII) were selling is in slow lane. In addition to this, the continuous buying by domestic institutional investors also supported the indices.
