Sensex Surges 400 Points, Nifty Crosses 23,550 Mark
Market Rises Amid Value Buying and Decline in Volatility
The equity benchmark indices Sensex and Nifty traded higher on Thursday, driven by value buying by investors.
At around 9:30 a.m., the Sensex, India's leading stock market index, was up 453.05 points or 0.6 percent at 75,062.03, while the broader Nifty, a widely followed stock market index, advanced to 23,576.20, up 163.60 points or 0.69 percent.
Market analysts point to two key factors behind the market rise. Firstly, investors have been engaging in value buying, purchasing beaten-down stocks in the hopes of long-term gains. This sentiment has been evident in recent trading sessions, with the Nifty and the Sensex rising about 0.1% each on Wednesday, after shedding about 4% in the previous four sessions, pressured by higher oil prices and Prime Minister Narendra Modi's austerity call.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Secondly, the decline in volatility has contributed to the market's upward trajectory. The fear gauge, or volatility index, has decreased by 2.5 percent to 18.94, indicating a reduction in market uncertainty.
| Index | Previous Four Sessions | Wednesday | Thursday |
|---|---|---|---|
| Sensex | -4% | 0.1% | 0.6% |
| Nifty | -4% | 0.1% | 0.69% |
Investor Takeaway
Investors should be cautious of market volatility and consider value buying opportunities.
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