Indian Stock Market Bounces Back from Initial Declines as FY26 Kicks Off
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Synopsis
On April 1, the Indian stock market witnessed a recovery after an initial decline, led by major stocks such as Bharti Airtel and ITC. The Sensex and Nifty indices showed resilience, with midcap and smallcap stocks leading the way.
Key Takeaways
- Indian equity indices opened lower but recovered.
- Heavyweights like Bharti Airtel and ITC performed well.
- Nifty Midcap 100 and Nifty Smallcap 100 indices showed positive movement.
- IT stocks faced selling pressure.
- FIIs were net sellers while DIIs continued to buy.
Mumbai, April 1 (NationPress) Indian equity indices began the day on a lower note but made a recovery during early trading, as major players like Bharti Airtel and ITC turned positive.
As of 9:44 am, the Sensex was down a mere 3 points at 77,412, while the Nifty rose by 23 points or 0.10 percent to reach 23,542.
The market's rally was primarily driven by smallcap and midcap stocks. The Nifty Midcap 100 index surged by 309 points, or 0.67 percent, reaching 52,017, and the Nifty Smallcap 100 index saw an increase of 88 points, or 0.55 percent, to 16,184.
Within the Sensex grouping, the standout performers included ITC, Bharti Airtel, IndusInd Bank, M&M, Power Grid, NTPC, Adani Ports, Nestle, Tata Motors, SBI, UltraTech Cement, and HUL. Conversely, Infosys, TCS, Bajaj Finance, HDFC Bank, Bajaj Finserv, Sun Pharma, HCL Tech, and Kotak Mahindra Bank faced losses.
There was noticeable selling pressure in IT stocks, with the Nifty IT index declining by 1.37 percent.
In addition, the indices for financial, pharma, FMCG, metal, realty, and private banks were in the red. Conversely, auto, PSU banks, and energy sectors were performing well.
Hardik Matalia, a derivative analyst at Choice Broking, mentioned, "Following a negative start, the Nifty may find support at 23,300, followed by 23,200 and 23,100. On the upside, 23,550 is seen as immediate resistance, followed by 23,650 and 23,800."
"The Bank Nifty charts suggest support at 51,300, then 51,000 and 50,700. Should the index progress further, 51,700 will serve as the initial key resistance, followed by 52,000 and 52,200," he added.
Most Asian markets are currently in the green. The markets in Shanghai, Tokyo, Seoul, Bangkok, and Hong Kong are thriving. The US markets rebounded from a seven-month low on Monday, closing with a 1 percent gain.
After experiencing buying in the last six sessions, foreign institutional investors (FIIs) turned net sellers on March 28, offloading equities worth Rs 4,352 crore. In contrast, domestic institutional investors (DIIs) continued their buying spree, acquiring equities worth Rs 7,646 crore on the same day.
