The Sensex and Nifty posted substantial gains, reflecting positive sentiment in the market.
Sensex opened 623.40 points up at 71,843.26, while Nifty witnessed a gain of 190.35 points, opening at 21,652.60. Among the Nifty companies, the market exhibited a robust advance, with 49 companies showing gains and only 1 declining.
Tech Mahindra, UPL, HCL Technologies, Eicher Motors, and Coal India emerged as the top gainers, contributing to the positive trend. However, IndusInd Bank experienced a decline at the time of the market opening.
Indian benchmark index trends on Gift Nifty indicated a relatively flat or slightly positive start, with Gift Nifty trading around 21,591 in comparison to Nifty futures' previous close of 21,550.
Recent sessions witnessed a 3 per cent decline in both the Nifty 50 and Sensex, prompting careful observation of market movements.
On January 18, the Sensex closed 0.44 per cent lower at 71,186.86, and the Nifty 50 settled 0.51 per cent lower at 21,462.25. The daily chart of the Nifty 50 reflected a small positive candle with upper and lower shadows, indicating heightened volatility in the market.
Varun Aggarwal, founder and managing director, Profit Idea, said, "Global factors have played a significant role in influencing market dynamics. TSMC's strong earnings report triggered a substantial rally in chipmakers, projecting solid growth in the sector."
"Despite positive US labor-market data, there is speculation about a rate cut in March, impacting Treasuries and the US dollar," he added.
In the US, major indices experienced gains, with the Dow Jones Industrial Average rising by 0.54 per cent, the S&P 500 surging by 0.88 per cent, and the Nasdaq reaching a new high, up by 1.35 per cent.
TSMC shares played a pivotal role in the Nasdaq's success, surging nearly 10 per cent. Other chipmakers, including Nvidia, Advanced Micro Devices, Broadcom, Qualcomm, and Marvell Technology, also witnessed notable gains.
Aggarwal said, "Oil prices remained steady, supported by escalating tensions in the Middle East, reaching a three-week high. Positive momentum in Asian markets was evident, with Japan's Nikkei 225 rallying by 1.4 per cent, Topix gaining 0.98 per cent, and South Korea's Kospi jumping 1.14 per cent".
The US dollar index continued its ascent for the fifth consecutive session, reaching 103.47, its highest level since December 13. In 2023, the National Stock Exchange of India maintained its position as the world's largest derivatives exchange for the fifth consecutive year, ranking third globally in the equity segment by the number of trades.
These market dynamics underscore the intricate interplay of global factors, including economic data, geopolitical tensions, and corporate performances, influencing investment decisions and shaping the trajectory of the stock market.
(ANI)
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