The Indian stock market ended almost where it started on Monday. The Sensex index climbed back after dropping 702 points early in the day, finishing slightly up. This recovery came from strong performances by big banks and Reliance Industries. However, overall feelings in the market were weak because of worries about global trade, slowing company earnings, and ongoing selling by foreign investors.
The BSE Sensex gained 57.65 points, ending at 75,996.86. The Nifty 50 index also rose, closing at 22,959.50, up by 30.25 points. Analysts like Vinod Nair from Geojit Financial Services feel that modest earnings growth and foreign investors selling stocks are holding back the market. Concerns over a weakened rupee and a growing trade deficit are making investors cautious.
Even with recent drops in broader market indices, many stocks are still overvalued. There is some hope that easing trade worries from the U.S. and early signs of increased spending could help the market bounce back.
In the U.S., stock markets were closed for George Washington’s birthday. Meanwhile, European stocks saw gains, particularly in defense-related shares, driven by talks of increased military spending due to the ongoing Ukraine war.
Technically, the market has shown some signs of recovery, but overall sentiment remains weak. Buyers were active on the lower end of the trading range, but until the index crosses the 23,150 mark, selling may continue.
Most active stocks included Godfrey Philips, Mahindra & Mahindra, and HDFC Bank, while the most traded stocks by volume were Vodafone Idea and YES Bank. A total of 69 stocks reached their highest prices in a year, but 907 stocks saw their lowest prices. Overall, the market sentiment was bearish with more stocks declining than advancing.
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