The benchmark stock market indices staged a substantial rebound on Friday, mirroring the positive shift in global cues and alleviating concerns regarding US interest rates.
The S&P BSE Sensex experienced a notable upswing, surging by 634 points to reach 63,782, while the NSE Nifty 50 exhibited a considerable gain, closing 190 points higher at 19,047.25. This resurgence also translated to broader market indices, resulting in a decline in volatility.
However, it's worth noting that despite this surge, both benchmark indices have encountered a decrease of over 2 percent throughout the week. This week's decline stands as the most significant since the one ending in September 2022.
Remarkably, many sectoral indices joined in this robust recovery, with influential ones like Nifty Bank, Nifty Financial Services, and Nifty IT recording gains exceeding 1 percent.
Nifty PSU Bank stood out by posting an impressive ascent of over 4 percent, supported by the rally witnessed in shares of public sector banks like Bank of India, Indian Overseas Bank, Canara Bank, and Union Bank of India.
The top five performers within the Nifty 50 included Coal India, HCL Tech, Axis Bank, SBI, and Bajaj Auto. Conversely, the top five decliners were UPL, ITC, Hindalco, BPCL, and Asian Paints.
Market analysts express their belief that the consolidation phase in domestic markets is likely to persist, but they remain optimistic about the prospects of a long-term recovery.
Shrey Jain, the Founder and CEO of SAS Online, offered insights, saying, "The market finally pulled itself out of a six-day slump, bouncing back today after taking a beating recently, thanks to a positive turn in Asian markets."
"When considering the technical aspects, the market appears to have reached its nadir, with various technical indicators indicating exhaustion in the downward trajectory. As for the aspects that demand our attention, it boils down to the Federal Reserve's actions in the upcoming month, the release of US consumer inflation data in mid-November, and the roller-coaster ride of oil prices, particularly in light of the ongoing developments in the Middle East conflict. These factors will serve as crucial factors for the market's resurgence efforts," he elaborated.
