Indian markets bounced back on Friday (26 July, 2024) after a period of turbulence caused by the recent Union Budget 2024, which included higher capital gains taxes and an increase in the Securities Transaction Tax (STT) on derivatives.
Even though global conditions were less favorable and foreign investors had been pulling out of Indian stocks after the budget announcement, the market made a strong recovery.
Indian stock indices broke a five-day losing streak and ended the day on a high note. The Nifty hit a new all-time high of 24,861.15. By the end of the trading day, the Sensex went up by 1,292.92 points (1.62%) to 81,332.72, and the Nifty increased by 428.70 points (1.76%) to 24,834.80.
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The rally was mainly fueled by strong buying in the IT and metal sectors. By the end of the day, the total market value of companies listed on the BSE had increased by Rs 6.92 lakh crore, bringing it to Rs 456.74 lakh crore.
The IT sector saw a significant rise, with stocks climbing as much as 7%. Leading the charge were Mphasis, LTIMindtree, and Infosys, boosted by better-than-expected US economic growth data from the second quarter.
The Nifty Metal index was the top sectoral performer, increasing by 3%. Key contributors included Adani Enterprises, Vedanta, and Tata Steel.
Infosys, Bharti Airtel, Reliance Industries, and TCS added nearly 500 points to the Sensex rally. Other major contributors were Kotak Bank, L&T, ITC, SBI, HCL Tech, and Tata Steel.
Also Read: SEBI Study Reveals 71% of Intraday Traders Lost Money in FY23
On the other hand, FMCG stocks have surged this week as the government emphasized boosting rural consumption by allocating more funds to various rural schemes in the budget.
Additionally, the government’s rural development initiatives are likely to have a positive effect on the two-wheeler market, benefiting domestic manufacturers like Bajaj Auto, TVS Motor, and Hero MotoCorp.
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