Friday Indian stock market witnessed severe fluctuations throughout the day. There was concern among investors as the trading session started with strong selling pressure. However, in the second half of the day the market witnessed a significant recovery. As a result, the major indices accounted for most of the initial losses.
During the day, Sensex rose by about 350 points from its intraday low. However, the stock ended above the crucial 24,000 point mark. Strong valuation-led buying, investor confidence and buying activity in some key sectors supported the rally, market experts said.
Trading started negative due to weak global signals and selling pressure. Initial decline: Sensex fell by more than 900 points. Similarly, NS stock fell by more than 250 points. However, the major indexes recovered sharply from their lows after buying activity recovered in the latter half.
At the close of trading, the BSE Sensex fell by 607.08 points to end at 76,802.90 points. The stock ended 154.90 points down at 24,013.10 points. Although both indices ended in the negative, losses were significantly reduced compared to the initial decline.
Experts said there were several key factors behind the market correction. After the sharp correction in the morning, shares of many leading companies were available at attractive prices. The market got support as long term investors and institutional investors started buying in these positions. India VIX, considered an indicator of volatility and fluctuations in the market, fell throughout the day. This increased investor confidence and indicated that the possibility of excessive fluctuations in the short term was reduced.
According to market analysts, the 23,900 point level acted as the main support for trading. With this status quo maintained, investors gained confidence that there was less chance of a major collapse.
Many major stocks included in the Sensex supported the market. ETERNAL rose by 2.21 per cent, Indian Airtel by 1.80 per cent, Power Grid by 1.32 per cent, NTPC by 1.04 per cent, Tamil Nadu by 0.84 per cent, Tamil Nadu by 0.79 per cent, ITC by 0.79 per cent and Trent by 0.77 per cent. Buying activities observed in security and utility sectors helped in market stability.
On the other hand, significant selling pressure was seen in information technology and some banking stocks. Infosys 6.69 percent, TCS 3.53 percent, HCL Tech 2.74 percent, Tech மகிந்திரா 2.47 percent, HDFC Bank 2.32 percent and மகிந்திரா & மகிநிரா 2.11 percent ஸரிந்தா. Analysts said the sector continued to remain under pressure due to concerns over global economic stagnation and earnings related to the information technology sector.
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