The Indian markets surged today, after facing 3 consecutive days of losses. Today, the Nifty and Sensex made strong gains. The Sensex opened at 81,327.61 points compared to its previous day, 81,186.44 points. It jumped by a whopping 800 points and was up at 82,021.64 points, and it closed by making some strong gains as it was up by 410 points,81,596. The Sensex was overall up by 0.52%.
If we look at the Nifty 50 index, it opened up at 24,744.25 points, the previous day’s close of 24,683.90 points. During the intra-day, it almost jumped to 24,946 points. It closed with a 130-point gain or 0.52% at 24,813.45 points.
Other indices like the BSE Mid-Cap and the BSE Small-Cap were up by 0.90 % and 0.51% respectively. If we look at the overall sentiments of the market, it was quite optimistic, Investors got rich by almost Rupees 3 lakh crores of the overall market capitalisation.
The key reason that the markets closed higher was due to a short covering in an oversold market. Experts believe that this prompted gains for the markets, and this correction prompted the investors to buy heavy stocks at lower prices. Another reason that the markets saw a surge today was because of a falling dollar, which positively influenced the domestic markets. It is also because of the positive economic outlook, as projections for India have been quite positive, and the inflation seems to be cooling down, which is heavily contributing to the market growth and also because of the possibility of the US-India trade deal, which is likely to be signed by July. In fact, according to PTI, Moody’s also said that India is well-positioned to deal with the Tariffs imposed by Trump.
Some experts also believe that the current positive gains of the market are only short-term gains, and they advise investors to keep an eye on the situation.
