What Led to the Markets' Rebound After a 4-Day Dip?

Mumbai, July 15 (NationPress) The Indian stock markets made a significant comeback on Tuesday after enduring four consecutive days of losses, propelled by favorable global developments, declining retail inflation, and consistent foreign fund investments.

Both primary indices concluded the trading session with robust gains. By the end of the day, the Sensex climbed by 317 points, equating to a 0.39 percent increase, concluding at 82,570.91.

Similarly, the Nifty finished 113.5 points higher at 25,195.8, reflecting a gain of 0.45 percent for the day.

Market sentiment displays signs of enhancement, buoyed by an amalgamation of international and domestic factors, according to analysts.

“Domestic inflation has diminished to multi-year lows, bolstering expectations for an additional rate cut by the RBI -- potentially fostering future economic growth, which is already exhibiting positive indicators,” remarked Vinod Nair of Geojit Investments Limited.

The broader market also joined the upswing. Both the Nifty MidCap and Nifty SmallCap indices appreciated by approximately 0.95 percent, reflecting substantial buying interest beyond the large-cap segment.

All sectoral indices on the 50-share index closed in the green. The Nifty Auto index spearheaded the gains with a 1.5 percent rise, while the Nifty Pharma and Healthcare indices also excelled, increasing by over 1 percent each.

Additional sectors such as banking, energy, financial services, IT, metal, PSU Bank, real estate, consumer durables, and oil & gas also concluded the day with gains of up to 1 percent.

The market atmosphere was further enhanced as the India VIX, often referred to as the fear index, decreased by 4.17 percent to settle at 11.48.

Analysts noted that the overall sentiment remained optimistic due to the easing of inflation data and continuous buying by foreign institutional investors, which aided the markets in recuperating lost ground.

Meanwhile, the Indian Rupee regained its strength against the US Dollar, reversing a recent two-day downturn.

Experts indicated that this appreciation is primarily a reflection of renewed investor confidence in domestic equity markets and a softening of the US Dollar Index.

“Market participants are eagerly anticipating the release of crucial US inflation data later today, as it is expected to significantly influence future monetary policy decisions and discussions regarding the Federal Reserve leadership, especially amidst ongoing trade uncertainties,” stated Dilip Parmar of HDFC Securities.