Indian Stock Market Rebounds After 4 Days of Losses
Indian stock markets bounced back on Tuesday, January 14, after four continuous days of losses. The Nifty 50 rose by 0.39% to close at 23,176, while the Sensex gained 0.22%, ending at 76,499. Mid-cap and small-cap stocks, which had struggled in recent sessions, showed significant improvement. The Nifty Smallcap 100 jumped 1.98% to 17,257, and the Nifty Midcap 100 gained 2.45%, closing at 53,676.
Gains cut by the End of the day in the Indian Stock Market
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Although the markets ended in positive territory, the early gains were reduced by the close. Both large-cap and broader market indices performed well, with mid-cap and small-cap stocks outshining the frontline indices. The recovery was driven by strong performance in banking, auto, and metal stocks. Adani Group stocks also saw gains, supported by speculation about new fundraising plans.
Key Reasons Behind the Recovery
The stock market recovery was influenced by several factors, including:
- A stronger Indian rupee.
- Lower crude oil prices.
- Domestic inflation falling to a four-month low.
- Buying opportunities at lower stock prices.
- Positive global cues, especially from China.
Focus on U.S. Data for Stock Market Direction
The future market trend will depend on important data from the U.S., including:
- Consumer Price Index (CPI): Scheduled for release on Wednesday.
- Jobless Claims Data: To be released on Thursday, providing insights into the U.S. economy.
Expert Opinion
Prashanth Tapse, Senior VP (Research) at Mehta Equities, commented:
“As markets were declining for several days, a short-term recovery was expected. Selective buying in banking, telecom, auto, power, and metal stocks boosted sentiment. Mid-cap and small-cap stocks also showed a sharp rebound.”He added, “However, caution remains as the rupee continues to hit fresh lows and foreign institutional investor (FII) outflows pose challenges for the market.”
Conclusion
The stock markets recovered today, but their performance in the coming days will depend on economic news from India and around the world. Investors should stay careful because there is still some uncertainty.
