1 week ago
Sensex and Nifty rise on short covering, global cues
India’s main stock markets rose on Thursday, 20 August.
The Sensex and Nifty 50 had fallen for several days before this increase.
Some investors bought shares to close bets that prices would fall, helping the markets bounce.
Experts said the markets had become oversold after the recent decline.
The US dollar became weaker, and US government bond yields fell.
These changes made Indian stocks look less risky to some global investors.
Foreign investors also continued buying Indian shares.
Banks, telecom companies, financial firms and other large stocks helped lift the indexes.
The total value of companies listed on the Bombay Stock Exchange rose by more than ₹3 lakh crore during the session.
The Sensex gained more than 600 points intraday to reach 77,514, while the Nifty 50 reclaimed 24,200.
The rally followed seven consecutive sessions of Nifty losses and four straight sessions of Sensex declines.
A weaker US dollar and lower 10-year US bond yields helped reduce concerns about foreign capital outflows.
Foreign portfolio investors bought Indian stocks worth ₹408 crore on Wednesday and ₹23,320 crore during August through 19 August.
HDFC Bank, Bharti Airtel, Eternal, Bajaj Finance and Kotak Mahindra Bank led Nifty gains, while Larsen & Toubro replaced Kotak Mahindra Bank among the top Sensex contributors.
- Who
- Indian stock-market investors, foreign portfolio investors and companies included in the Sensex and Nifty 50.
- What
- The Sensex and Nifty 50 recorded healthy intraday gains, supported by short covering, improved global cues and foreign-investor buying.
- Where
- Indian equity markets, including the Sensex and Nifty 50.
- When
- Thursday, 20 August; the figures cited were recorded around midday and 12:30 PM.
- Why
- The rise was attributed to short covering after a prolonged correction, a weaker US dollar and lower bond yields, and continued FPI purchases.
Key facts
- Sensex intraday high
- 77,514, after rising more than 600 points.
- Nifty level
- The Nifty 50 reclaimed 24,200 and was up 0.60% during the session.
- Broad-market performance
- The Nifty Midcap 150 rose 0.69% and the Nifty Smallcap 250 rose 0.88% around 12:10 PM.
- Market capitalisation
- BSE-listed companies' combined market value rose to more than ₹492 lakh crore from ₹488.70 lakh crore.
- Foreign buying on Wednesday
- FPIs bought Indian stocks worth ₹408 crore in the cash segment.
- Foreign buying in August
- FPIs bought Indian stocks worth ₹23,320 crore from 1 August through 19 August, after buying ₹20,200 crore in July.
- Bond-yield movement
- The US 10-year bond yield fell a further 0.20% during trade to 4.64%.
Quotes
VK Vijayakumar
Chief Investment Strategist at Geojit Investments
“"The market, which has been steadily downtrending for the last several trading sessions, appears set for a short-term reversal now. The market is in oversold territory, and a mild rally triggered by short‑covering is likely."”
livemint.com
Sources
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