New Delhi: There was an earthquake in the Indian stock market on Wednesday due to increasing tension in the Middle East and rising cost of crude oil. However, on Thursday the market made a great comeback and Sensex-Nifty opened with both green marks and reached 500 points. Let us tell you that after the statement of US President Donald Trump, investors had done heavy selling on Wednesday. But the very next day, value buying and improved sentiment brought the market back on track.
There was a big crash on Wednesday
On the previous trading day, Trump had announced to end the peace talks with Iran, calling them a waste of time, after which oil prices reached $ 80 per barrel. The market panicked due to this news, after which BSE Sensex closed down by more than 1600 points. NSE Nifty also fell by more than 500 points, due to which investors lost about Rs 9 lakh crore in a single day.
The market turned around on Thursday
However, the market made a strong start on Thursday, the fourth day of the week. Let us tell you, BSE Sensex opened at 76,576 as against its previous closing of 76,503 and within 10 minutes of opening, it rose by more than 500 points and crossed 77,019. NSE Nifty also opened at 23,928 from 23,882 and then went above 24,000 with a rise of more than 150 points. The special thing was that the entire fall of Wednesday was recovered in the opening of Thursday itself.
Who became the ‘hero’ shares of the market?
In this boom, buying has been seen in all largecap, midcap and smallcap sectors. In largecap, Eternal rose by 4%, SunPharma was up by 2.70% and Bharti Airtel was up by about 2%. Majors like Asian Paints, ICICI Bank, Titan, Reliance, Trent and HUL were also up by more than 1%. In midcap, Dixon was seen gaining by 4.40%, Laurus Labs by 3.30%, Godrej Properties by 2.80% and Nykaa by 2%. In smallcap, Welcorp were trading up by 5%, IIFL by 3.70% and PGEL by 3.60%.
Why did the market run away even though crude became expensive?
The biggest question is that when Brent crude is close to $80 and there is tension between Iran and America, why did the market rise? Experts say there are two reasons for this. First Value Buying, after Wednesday’s huge fall, investors bought heavily at lower levels. The second reason was the fall in India VIX, which is considered a measure of fear. India VIX had jumped by 30% on Wednesday, but on Thursday it fell around 7%. This indicated that the nervousness in the market has reduced. At present, investors are keeping an eye on global news, but Thursday’s rally ended the panic in a day.
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