Indian Markets Post Gains, Sensex Rises 450 Points Amid Key Market Factors

Market Update: Indian Indices Recover Amid Global Cues

Key Figures:

• Sensex: up 472.30 points or 0.60 percent at 79,588.49
• Nifty: up 165.30 points or 0.68 percent at 24,645.80
• India Vix: decline of nearly 10 percent to 19.04 level

Market Performance

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The Indian benchmark indices, Sensex and Nifty, recovered on Thursday, tracking a recovery in Asia driven by a modest improvement in risk sentiment. The Sensex rose by 0.60 percent, while the Nifty gained 0.68 percent. A total of 2,324 shares advanced, 968 shares declined, and 136 shares remained unchanged.

Sector Performance

All 16 major sectors logged gains at the open, with the broader small-caps and mid-caps rising about 1% each.

Market Drivers

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1. Value Buying: Investors jumped to buy stocks in realty, metal, and auto at lower levels after a three-session sell-off.
2. Positive Global Cues: South Korea's Kospi index rose more than 9%, and other Asian markets, including Hang Seng and SSE Composite Index, also gained.
3. India Vix Decline: The fear gauge or volatility index declined nearly 10% to 19.04 level.

Technical Outlook

Anand James, Chief Market Strategist at Geojit Investments, noted that while the market recovery was expected, the hammering in the closing hour took away some upside momentum. However, the subsequent close near 24,450 lends a positive bias. The resistance level is seen at 24,840, while 24,625 is a stiff barrier. Alternatively, a slip past 24,370 could revive possibilities of 24,000-23,550.