Six-day losing streak ends, Sensex gains over 500 points; Nifty near 24,200
Indian stock markets ended a six-day losing streak on Thursday as the Sensex gained over 500 points and the Nifty moved close to 24,200 amid positive global cues and FII buying.
Mumbai (The Uttam Hindu): The Indian stock market's six-day losing streak came to an end on Thursday. Supported by positive global cues and buying by foreign investors, the Sensex gained more than 500 points to trade around 77,425. The Nifty also rose 123 points to around 24,199.
Among sectoral indices, Nifty IT, Auto, Financial Services and FMCG were trading higher. The Nifty IT index gained around 1.47%. Infosys, Bajaj Finance and Shriram Finance were among the top gainers on the Nifty, with their shares rising by around 1%.
On the other hand, MRPL and Tube Investments were among the top losers on the Nifty. Both stocks declined by around 1%.
The Indian market also received strong signals from global markets. Asian stock markets recorded significant gains on Thursday. South Korea's KOSPI jumped 5.8%, while Japan's TOPIX gained 1.1% and Hong Kong's Hang Seng rose 1.2%. The Shanghai Composite also advanced around 0.7%.
US stock markets also closed slightly higher on Wednesday after three consecutive sessions of losses. The Dow Jones gained 0.22%, the Nasdaq rose 0.16% and the S&P 500 advanced 0.21%.
Bond yields also eased after the US Treasury announced plans to increase buybacks of longer-term bonds. The 10-year US Treasury yield stood at around 4.655%, while the 30-year yield was around 5.19%. The strength in US markets and softer bond yields are being viewed as positive signals for Indian equities.
Foreign investor sentiment towards Indian equities also appeared to improve slightly. On August 19, foreign institutional investors (FIIs) remained net buyers of Indian shares for the second consecutive trading session, purchasing stocks worth around ₹407 crore.
Continued FII buying for two sessions could provide support to the market. However, investors will continue to closely watch foreign investor activity, as FII buying and selling remains an important factor influencing market direction.
India VIX, which indicates market fear and volatility, fell around 4% to 10.91. The decline suggests that investors currently have lower concerns about major market fluctuations and uncertainty.
A fall in VIX is generally considered a positive signal for the market. It can improve investor confidence and support stronger buying activity in equities.