Nifty recovers 24000 mark, Sensex rises 400 points after sharp fall

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Indian stock markets bounced back on Friday, reversing a sharp correction from the previous day. On Thursday, both indices faced a steep decline of over 1 per cent, driven by concerns over geopolitical tensions and uncertainty regarding future interest rate cuts by the US Federal Reserve.

However, Friday saw the Nifty index regain the 24,000 mark, while the Sensex surged by more than 300 points, reflecting positive sentiment in the market. The Nifty 50 opened flat at 23,927.15, showing a gain of 13 points or 0.05 per cent, while the BSE Sensex registered a marginal decline of 10 points or 0.01 per cent, opening at 79,032.99.

Experts cited the ongoing geopolitical tensions and the unpredictability of the US Fed's monetary policy as key factors influencing market movements. Additionally, the shifting dynamics in global trade, which may undergo significant changes under a potential second term for former US President Donald Trump, have added to the market uncertainty.

"The market faced a 1.5 per cent decline in the previous session, mainly due to concerns over global geopolitical developments and the Federal Reserve's stance on interest rates. The evolving trade dynamics are also contributing to a sense of unease, with the prospect of a trade war that could adversely affect developing economies such as India," said Varun Aggarwal, MD of Profit Idea. "If the Nifty falls below 23,870, there could be further downside, potentially heading towards the 23,500 mark."

Indian stock markets bounced back on Friday, reversing a sharp correction from the previous day. On Thursday, both indices faced a steep decline of over 1 per cent, driven by concerns over geopolitical tensions and uncertainty regarding future interest rate cuts by the US Federal Reserve.

However, Friday saw the Nifty index regain the 24,000 mark, while the Sensex surged by more than 300 points, reflecting positive sentiment in the market. The Nifty 50 opened flat at 23,927.15, showing a gain of 13 points or 0.05 per cent, while the BSE Sensex registered a marginal decline of 10 points or 0.01 per cent, opening at 79,032.99.

Experts cited the ongoing geopolitical tensions and the unpredictability of the US Fed's monetary policy as key factors influencing market movements. Additionally, the shifting dynamics in global trade, which may undergo significant changes under a potential second term for former US President Donald Trump, have added to the market uncertainty.

"The market faced a 1.5 per cent decline in the previous session, mainly due to concerns over global geopolitical developments and the Federal Reserve's stance on interest rates. The evolving trade dynamics are also contributing to a sense of unease, with the prospect of a trade war that could adversely affect developing economies such as India," said Varun Aggarwal, MD of Profit Idea. "If the Nifty falls below 23,870, there could be further downside, potentially heading towards the 23,500 mark."

Among sectoral indices, Nifty IT and Nifty Realty stood out as exceptions, while the Nifty Media index saw a sharp recovery of 1.58 per cent, suggesting a positive market sentiment in some sectors.

In terms of individual stocks, top gainers on the Nifty 50 included HDFCLife, SBILife, Dr Reddy, Adani Enterprises, and Sun Pharma, while Power Grid emerged as the top loser. Adani group companies showed continued recovery, with Adani Green shares surging by more than 7 per cent during the day's early hours.

The broader Asian market showed a mixed performance on Friday. Japan's Nikkei 225 index faced selling pressure, dipping by 0.41 per cent, while markets in South Korea and Indonesia saw a sharp correction of over 1 per cent. On the other hand, Hong Kong's Hang Seng and China's Shanghai Composite Index recorded marginal gains.

As per ANI, domestic stock markets had experienced selling pressure the day before, with both indices declining by over 1 per cent due to losses in technology stocks, lack of significant global cues, and weak performances across Asian markets.

ANI reports that the Indian stock market's recovery on Friday provides a ray of optimism, though experts continue to monitor the ongoing risks related to global economic and political developments.

(With inputs from ANI)