On Monday, August 11, the Indian equity markets saw a sharp recovery after a difficult week. Both the SENSEX and NIFTY50 hit three-month lows in the previous session, marking their longest losing streak in five years. The SENSEX jumped by 700 points intraday. Meanwhile, the NIFTY50 regained the important 24,550 level, reaching a peak of 24,583.65. By 2:52 PM, the SENSEX was up 670 points at 80,528, and the NIFTY50 rose 212 points to 24,576.
Global events also played a role in the market’s recovery. Reports indicated that US President Donald Trump and Russian President Vladimir Putin are set to meet on August 15 in Alaska. The meeting aims to discuss the ongoing Ukraine war, which has raised investor hopes for a peaceful resolution. The Indian Ministry of External Affairs welcomed this development, expressing optimism for progress.
Analysts believe that a successful outcome from the talks could lead to the US lifting its 25% tariffs on Indian goods that resulted from India’s imports of Russian oil. Trump had previously warned of new sanctions on countries that buy Russian exports unless the conflict ceases.
Technical factors also contributed to Monday’s gains. Market experts noted that heavy selling had pushed the NIFTY50’s Relative Strength Index (RSI) down to 31, close to the oversold zone. This situation prompted short covering, leading to the market bounce-back.
Top contributors to the SENSEX gains included major companies such as HDFC Bank, Reliance Industries, State Bank of India, Larsen & Toubro, Eternal, Axis Bank, and Tata Motors, collectively adding over 450 points.
All major sector indices on the National Stock Exchange (NSE) traded higher. The NIFTY PSU Bank index led the way with a 2% jump. Other sectors like Realty, Healthcare, Auto, Financial Services, FMCG, Metal, Bank, and Pharma indices gained between 0.8% and 1.9%. The NIFTY Midcap 100 rose by 0.91%, while the Smallcap 100 climbed 0.42%.
In terms of individual stocks, Adani Enterprises was the top gainer on the NIFTY50, rising 4.95% to ₹2,286. Other notable gainers included Eternal, Tata Motors, Trent, Grasim Industries, State Bank of India, Apollo Hospitals, Ultratech Cement, and Jio Financial Services, which saw gains between 1.9% and 3.12%.
However, not all stocks fared well. Key losers included Hero MotoCorp, ICICI Bank, Bharat Electronics, Power Grid, and Bharti Airtel.
Investors remain cautious as they monitor global events. Despite the positive movements in the market, there are ongoing risks, including potential escalations in the Middle East and rising COVID-19 cases in some Indian states. The market’s performance continues to be closely linked to international developments.
In conclusion, Monday’s rally marks a significant rebound for Indian equity markets. With positive news from global leaders and technical recovery signals, investors are hopeful for continued growth in the coming days. However, they remain vigilant as uncertainties linger in the global economic landscape. The overall sentiment remains cautiously optimistic as the market adjusts to ongoing developments.