India: Sensex acquires more than 600 points; Nifty picks up 12,200 marks
Equity index BSE Sensex added more than 600 points on Thursday to touch the 41,000 thresholds as international markets bounced back on Wednesday after the US conciliatory statement regarding Iran.
President Donald Trump’s conversation wanting a de-escalation of growing tension in Western Asia, even as Iran fired rockets at US military installations in Iraq as a retaliation against the assassination of top Iranian commander Qassem Soleimani
BSE Sensex shut down at 41,452.35 points, up 634.61 or 1.55%. The wider social NSE Nifty soared to close at 12,215.90 in 190.55 (1.58 per cent).
Tata Motors, ICICI Bank and SBI were key winners, rising simultaneously by 5.18%, 3.80% and 3.25%.
TCS, with its stock price dropping by 1.73 points, was the biggest loser.
Researchers believe the turnaround to have been personally experienced in Iran-US tensions after de-escalation. Wall Street equities also came to an end on Wednesday, on a brighter note.
Shrikant Chouhan, Senior Vice President, Equity Technical Analysis, Kotak Securities, commented on the market performance on Thursday, “Stock markets jumped strongly back on oil price lowering and domestic currency recovery. Crude prices dropped from $70 a barrel to $65 a barrel after US President trump’s statement showing signs of reducing friction between both the U.S. and Iran.”
Nagaraj Shetti, Technical & Derivative Analyst at HDFC Securities, replied, “The Nifty witnessed a heavy gain today and closed higher after showing a promising upside bounce from the lows in the last session.”
“Across market candle was established today with an opening gap and closed below the tops. The opening downside gap continues unfulfilled. Technically, this activity suggests a clear return of bulls and this trend seems to have nullified the negative position generated by the 6th January 2020 panic selling,” he added.