Sensex Soars by 566 Points, Nifty Maintains 23,000 as US Tariff Anxieties Diminish
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Synopsis
On January 22, Mumbai's stock market saw a dramatic turnaround as the Sensex surged by 566 points and the Nifty held at 23,000, thanks to easing fears over US tariffs, indicating a potential recovery in the near future.
Key Takeaways
- Sensex increased by 566 points, closing at 76,404.99.
- Nifty ended at 23,155 with a rise of 130.7 points.
- Market experts suggest bullish momentum if Nifty closes above 23,500.
- Top gainers included Infosys, TCS, and Tech Mahindra.
- Broader markets struggled, with significant losses in SmallCap and MidCap indices.
Mumbai, Jan 22 (NationPress) The Indian stock market experienced significant fluctuations on Wednesday, as the benchmark indices Sensex and Nifty surged robustly in the latter part of the trading session following a decrease in concerns regarding upcoming US trade tariffs.
At the end of trading, the BSE Sensex closed at 76,404.99, up by 566 points or 0.75 percent, while the Nifty 50 finished at 23,155, an increase of 130.7 points or 0.57 percent. Throughout the day, the Sensex hit an intra-day low of 75,817, and the Nifty dropped to 22,981 before making a recovery.
Market analysts noted that the Nifty found support near its previous day's low of 22,980 and formed a hammer tweezer bottom candlestick pattern on the daily chart, indicating a potential recovery towards 23,350 following Tuesday's decline.
For sustained bullish momentum, Nifty must close above 23,500, where the 21-day EMA is situated. Until then, experts recommend a cautious strategy.
The top gainers on the Sensex included companies such as Infosys, TCS, Tech Mahindra, Maruti Suzuki, Sun Pharma, HCLTech, and Nestle India, which saw increases of up to 2.7 percent.
Conversely, Tata Motors, Zomato, NTPC, SBI, Tata Steel, and Power Grid were among the biggest losers, experiencing declines of up to 3 percent.
On the Nifty 50, 26 stocks were in the green, while 24 stocks were in the red, and one stock ended the day unchanged.
However, broader markets lagged behind the recovery of the benchmark indices, with the Nifty SmallCap index dropping 2.7 percent and the Nifty MidCap index falling 2.3 percent.
Sector performance reflected notable weakness in specific areas, with the Nifty Realty index plummeting 5 percent. The Nifty PSU Bank index and Nifty Metal index also experienced declines of 2 percent and 1.8 percent, respectively.
On Monday, foreign institutional investors (FIIs) sold shares worth Rs 5,920 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 3,500 crore on the same day.
