Did the Stock Market Rise Thanks to Banking and Metal Stocks?
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Synopsis
On October 3, the domestic equity indices witnessed an upward trend, driven by increased buying in banking and metal stocks. The Sensex and Nifty both closed higher, signaling potential recovery and optimism in the market.
Key Takeaways
- Sensex closed at 81,207.17, up 223.86 points.
- Nifty ended at 24,894.25, gaining 57.95 points.
- Positive movements observed in PSU banking and metal stocks.
- Analysts predict potential for further gains towards 25,200.
- Broader indices also saw significant increases.
Mumbai, Oct 3 (NationPress) The domestic equity indices concluded the trading session on a positive note on Friday, driven by robust buying in PSU banking, consumer durables, and private banks stocks.
The Sensex finished at 81,207.17, marking an increase of 223.86 points or 0.28 percent. The 30-share index had begun the day lower at 80,684.14, compared to the previous session's close of 80,983.31. However, it rebounded to end in the green due to strong buying in banking and metal sectors, reaching an intra-day high of 81,251.99.
The Nifty closed at 24,894.25, up by 57.95 points or 0.23 percent.
The Nifty marked its second consecutive session of recovery, surpassing its critical 50-DMA at 24,830 and forming a bullish candle on the daily chart. Following last week’s significant drop, analysts noted a recovery trend, with the index closing above 24,800.
Looking forward, a gradual ascent towards 25,200 appears likely, and a decisive breakout above this threshold could pave the way for an extended rally towards 25,500.
Top gainers in the Sensex basket included Tata Steel, PowerGrid, Kotak Bank, Axis Bank, L&T, BEL, Titan, Asian Paint, NTPC, and SBI. On the downside, stocks like Tech Mahindra, Maruti, Ultratech Cement, Bajaj FinServ, Sun Pharma, ICICI Bank, and Eternal closed lower.
Most sectoral indices showed upward movement amid positive buying sentiment. The Nifty FMCG rose by 65 points or 0.12 percent, Nifty IT increased by 44 points or 0.13 percent, Nifty Bank gained 241 points or 0.44 percent, and Nifty Fin Services ended the session 44 points or 0.17 percent higher.
The broader indices also saw significant gains, with Nifty Midcap 100 rising 473 points or 0.83 percent, Nifty Small Cap 100 surging 122 points or 0.69 percent, and Nifty 100 finishing up 66 points or 0.26 percent.
The Indian currency has stabilized within a narrow range over recent days after hitting a historic low earlier this week.
According to Dilip Parmar of HDFC Securities, "The overall sentiment for the rupee remains negative due to ongoing capital outflows from foreign investors. However, a rebound in local markets and a decrease in crude oil prices have contributed to some stability."
In terms of short-term projections, the spot USD-INR shows an upward trend line support around 88.40, while facing resistance at 89.10, he added.
Point of View
I believe the recent recovery in the stock market demonstrates resilience amidst volatility. The upward movement in the Sensex and Nifty indicates a potential turnaround, yet we must remain cautious about external economic factors affecting investor sentiment.
NationPress
03/10/2025
Frequently Asked Questions
What caused the stock market to rise on October 3?
The rise was primarily driven by substantial buying in PSU banking and metal stocks, leading to gains in both the Sensex and Nifty indices.
What are analysts predicting for the stock market's near-term outlook?
Analysts foresee a gradual move towards 25,200, with a potential breakout beyond this level opening the path for an extended rally towards 25,500.
