Nifty Rallies Close to Record High, Breaking 5-Day Downward Trend

Ira Singh
Khabar Khabaron Ki,26 July’24

The Indian stock market snapped its five-day losing streak on Friday with the Nifty 50 closing near its all-time high. This rebound was primarily driven by robust corporate earnings, particularly from the IT and banking sectors, which lifted investor sentiment. This recovery was driven by value buying at lower prices and gains in major blue-chip stocks like Infosys, Tata Consultancy Services, and Reliance Industries

Additionally, sustained buying interest from foreign institutional investors (FIIs) provided further support to the market recovery.At close, the Sensex was up 1,292.92 points or 1.62 percent at 81,332.72, and the Nifty was up 428.75 points or 1.76 percent at 24,834.85. About 2329 shares advanced, 1108 shares declined, and 75 shares unchanged.

Shriram Finance, Divis Labs, Apollo Hospitals, Bharti Airtel and Cipla were the top gainers on the Nifty, while losers included ONGC, Tata Consumer Products, and Nestle India.

On the sectoral front,all the sectoral indices ended in the green with IT, metal, pharma, realty, auto, FMCG, capital goods, telecom, media up 1-3 percent.BSE Midcap index rises 2 percent and Smallcap index up 1 percent.

Market this Week:
●On Friday morning, Indian government bond yields reportedly fell, with the 10-year benchmark yield dropping to its lowest level in over two years.

●On Friday, the yen reportedly,was set for its strongest week in almost three months as traders adjusted their positions ahead of key U.S. inflation data that may influence Federal Reserve rate expectations.

●The yen surged to a near three-month high of 151.945 per dollar on Thursday, rebounding from a 38-year low of 161.96 per dollar at the start of the month.

●US economic data from overnight gave some cause for optimism, with economic growth faster than expected in the second quarter and inflation cooling. That helped dispel worries that the expansion was in danger of an abrupt end, while also supporting wagers for a Federal Reserve interest rate cut in September, according to information.

Rupee Close:
On 26 July’24,the Indian rupee declined to its weakest level on record on Friday to 83.72 against the US dollar, pressured by dollar demand from local oil companies, custodial banks and tepid risk sentiment.The rupee has weakened to record low levels in four of the five trading sessions this week, stated experts.

Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services, reportedly quoted as saying,the domestic market experienced a substantial rebound on the start of the next month expiry, recovering from the recent losses incurred following the Union budget. This upturn was driven by positive reactions to the better-than-expected US GDP, which augurs well for global demand. Investors are adopting buy on dip strategy, refocusing on quarterly earnings and stock-specific trends. Notably, gains were observed across sectors, with Metals and IT leading, and midcaps outperforming.

Market experts recommend these five shares to buy today — Laurus Labs, LIC Housing Finance, Balkrishna Industries, IndiGo, and Zydus Life.