Stock Market Rally Reasons: Sensex and Nifty staged a sharp recovery in the last one hour of trade on Thursday (April 2), led by aggressive buying across the board, especially in the IT sector. Both the benchmark indices recovered all the losses to give a positive closing.
At one point, Sensex was down more than 2,000 points, but the index recovered and closed with a gain of 185.23 points, or 0.25 per cent, at 73,319.55.
The NSE Nifty also recovered strongly and closed at 22,713.10, up by 33.70 points, or 0.15 per cent. The index was down nearly 500 points at one time.
Sensex, Nifty Rally: Stock Market Rally Reasons
1. Value Buying In IT, Bank - Stock Market Rally Reasons
Strong value buying in IT like HCL Tech and TCS, and banking giants HDFC Bank and ICICI Bank, helped the markets recover from sharp losses. The Nifty IT index gained 2.60 per cent. Infosys, Tata Consultancy Services, HDFC Bank, Bajaj Finance, Maruti Suzuki India, Titan, Axis Bank, Bharat Electronics Ltd, Kotak Mahindra Bank and ITC were the major gainers
2. Recovery In Rupee - Stock Market Rally Reasons
A sharp rebound in the rupee after the Reserve Bank of India (RBI) stepped in with a slew of measures to restrict banks from onshore forward markets also helped improve investor sentiment. The rupee rebounded by 188 paise to hit the 92 level against the US dollar briefly in the day trade before settling over 150 paise higher.
3. Technical Rally - Stock Market Rally Reasons
Nifty bounced back from the support of around 22,200 (Stock Market Rally Reasons). Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse, said that the market remained under pressure for the sixth consecutive week, with the Nifty closing below the 22,800 mark on a weekly basis. On the weekly chart, it formed a high-wave candle, while continuing its pattern of lower highs and lower lows. However, a strong rebound was witnessed from the 22,180 level, which is likely to act as a key support going ahead. Although the broader structure remains weak, a sharp pullback towards the 23,200 zone cannot be ruled out.
"A decisive break above 23,500 would be required to negate the bearish setup and open the path towards 24,000 and higher levels," the expert said.
Meanwhile, President Donald Trump has said that the US will continue to hit Iran very hard. The United States will "finish the job" in Iran soon as "core strategic objectives are nearing completion" and military operations could wrap up soon.
