Stock market recovered half of the loss in a single day, when will the rest recover?

by

The stock market rallied on Wednesday, battered by the results of the Lok Sabha elections. The Sensex rose 2303 points or 3.20 percent to close at 74382. The Nifty also closed at 22420, up 3.36 or 735 points. Earlier on Tuesday, both the indices had recorded a massive decline of six percent. Stock markets have recovered almost half of these losses on hopes of a stable government.

How long will it take to get back to normal?

Global brokerage firm JP Morgan says Indian markets will continue to fluctuate in the next few days. Investors may be more inclined towards larger and less risky stocks. The firm expects inherent volatility in the Indian stock market to normalize after the formation of a new government, which historically returns to pre-election levels in about a week.

For the third time, the Modi government, Adani returned to the 100 billion dollar club

Strong buying in all stocks

All the stocks included in Sensex and Nifty were in profit. The market was bullish due to buying in shares of banks, automobile and petroleum companies. IndusInd Bank rose more than seven percent. Apart from this, Tata Steel, Mahindra & Mahindra, Bajaj Finance, Kotak Mahindra Bank, Hindustan Unilever, HDFC Bank, Axis Bank and JSW Steel were also big gainers. At the same time, selling associated with PSU stocks saw a rise of 9.39 percent. Similarly, shares of NCC have increased by 8.82 percent and shares of Hindustan Copper have increased by 8.20 percent.

Market cap Rs. Crossing 400 Lakh Crores

The BSE Midcap index, representing stocks of medium-sized companies, rose 4.41 percent, while the Smallcap index, representing stocks of smaller companies, gained 2.93 percent. Today the total market capitalization of all companies is Rs. 13 lakh crore has been seen to increase, after which it once again rose to Rs. 400 lakh crore has been crossed.

It was the biggest drop in four years

It may be noted that the market, disappointed by the election results, took a big jump on Tuesday. The Sensex was down 4,389.73 points. While the NSE Nifty fell by 1,982.45 points. This was the biggest drop in a single day in the last four years.

Leave a Comment