All's well that ends well; this proverb proved true this week in terms of the stock market's performance. From the beginning of the week, the stock market's decline had increased worry lines on investors' foreheads. Even on Friday morning, Dalal Street had started down. But before the market closed, the country's two benchmark indices saw significant gains. As a result, there's a positive vibe in the Sensex and Nifty50 graphs at the week's end, which will certainly keep investors at ease.
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On Friday, Nifty50 rose 0.59 per cent or 152 points. As a result, the National Stock Exchange's main index stands at 26,186 points. Sensex increased 0.52 per cent or 447 points. Consequently, the Bombay Stock Exchange's main index stands at 85,712 points. Friday's gains have provided balm to the wounds from the first three sessions of the week. Therefore, despite declines in three sessions, there isn't much difference in Sensex and Nifty50 points compared to the week's beginning.
However, while Sensex and Nifty50 gained, mid-cap and small-cap indices remained down. On the Bombay Stock Exchange, the mid-cap index fell 0.21 per cent, and the small-cap index declined 0.67 per cent. Additionally, mixed performance was seen among sectoral indices. In Nifty, sectoral indices like PSU Bank, Financial Services, IT, Bank, Auto, Metal, and Realty saw the highest gains. But multiple sectoral indices like Energy, Pharma, FMCG, and Defence declined.
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Market experts believe that several Reserve Bank announcements played a significant role in the substantial gains of Sensex and Nifty50 despite the down start in the week's final trading session. After the December Monetary Policy Committee meeting, RBI Governor Sanjay Malhotra announced a 25 basis point repo rate cut on Friday. Experts say this announcement by the country's apex bank has provided fresh oxygen to the struggling stock market. Additionally, to reduce pressure on the rupee, the RBI has decided to infuse ₹1.45 lakh crore into the country's banking system. Analysts say this has reassured investors. Moreover, positive messages about the GDP growth rate have come from the Reserve Bank. Experts say the combined effect of all these factors has led to the bull run seen on Dalal Street.
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