Market Performance
Indian equity markets staged a strong comeback on Wednesday, May 21, breaking a three-day losing streak. The Sensex jumped 410 points to close at 81,596.63, while the Nifty 50 ended 130 points higher at 24,813.45.
- Sensex Intraday High: 82,021.64
- Nifty Intraday High: 24,946.20
- Advances/Declines: 2,214 stocks advanced, 1,615 declined
- India VIX: Up 2.53%, indicating increased market volatility
Broader markets also participated in the rally:
- BSE Midcap: Up 0.90%
- BSE Smallcap: Up 0.51%
- Nifty Midcap 100: +0.8%
- Nifty Smallcap 100: +0.4%
Overall, investors gained approximately ₹3 lakh crore in a single day as BSE market capitalization rose to nearly ₹441 lakh crore.
Main News
The rally was led by pharma, IT, realty, and auto sectors. On the flip side, consumer durables underperformed.
Top Gainers on Nifty:
Top Losers on Nifty:
Key Drivers Behind the Market Rally:
- Short Covering in Oversold Territory
Markets had declined nearly 2% over the last three sessions, prompting a buying spree in heavyweight stocks at attractive valuations.
- US Dollar Weakness
The Dollar Index (DXY) dipped to 99.60, encouraging foreign inflows into emerging markets like India.
- Positive Economic Sentiment
Despite global concerns, India's growth outlook remains robust. Inflation has cooled to a six-year low, improving investor confidence.
- Optimism Around US-India Trade Relations
Developments on the trade deal front are also supporting sentiment, though volatility may persist until more clarity emerges.
Company Details
Shares of Dixon Technologies dropped over 7% following its Q4 earnings. The decline was driven by profit booking after the company posted a fourfold jump in net profit to ₹401 crore, which included a one-time gain of ₹250 crore from share sales.
Sector Performance Snapshot
- Nifty Realty: +1.51%
- Nifty Pharma: +1.10%
- Nifty IT: +0.70%
- Auto Index: +0.68%
- Consumer Durables: -0.49% (worst performer)
- Nifty Bank & Private Bank: Flat with marginal uptick
- FMCG, Infra, Energy, PSU Banks: Posted moderate gains
Summary
The Indian stock market saw a notable reversal on May 21, driven by pharma, IT, and auto sector gains. The Sensex and Nifty News reflect improving investor sentiment supported by short covering, a weaker dollar, and resilient macroeconomic indicators. While market breadth remains positive, increased volatility suggests cautious optimism in the days ahead.
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