The country's stock market had fallen into a pit of decline during all five trading sessions of last week. From Monday morning, the points of the country's two benchmark indices were declining. Seeing this, investors' foreheads were creasing with worry. But the country's stock market turned around at the end. Market experts say the statement by the US Ambassador to India played an important role in bringing back positive sentiment to Dalal Street.
During last week's five trading sessions, both benchmark indices lost around two and a half percentage points. On Monday morning, the Sensex fell by about 715 points or 0.85 per cent. Nifty dropped below 25,500 points. But around 1 PM, the situation began to change. After absorbing the 700-point shock, the Bombay Stock Exchange's main index returned to positive territory. The Nifty50 graph also turned from red to green.
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At market close, the Sensex rose 302 points or 0.36 per cent compared to the last closing. Nifty50 increased by 107 points or 0.42 per cent. Due to this growth, the Sensex stands at 83,878 points, and the Nifty50 stands at 25,790 points. This means the Sensex rose by about 1,017 points from the morning's down position.
Although the two benchmark indices turned around, the mid-cap and small-cap indices could not handle the shock of decline. The mid-cap and small-cap indices on the Bombay Stock Exchange fell by 0.41 per cent and 0.68 percent respectively. However, mixed performance was seen among sectoral indices as well. Sectoral indices like metal, capital market, bank, FMCG, oil and gas, financial services, and energy in Nifty showed growth. However, multiple sectoral indices like realty, pharma, auto, and IT in Nifty lost points on Monday.
Why did the market grow?
Despite starting with a decline, the country's stock market saw significant growth at the end. Regarding the market's turnaround, Vinod Nair, Research Head at Geojit Investment, said, "The positive comments by the incoming US Ambassador to India regarding trade deals have raised hopes among investors. This played a significant role in changing the market situation."
What did the Ambassador say?
US Ambassador to India Sergio Gor is close to US President Donald Trump. He said on Monday that friendship with India is more important to America than with any other country. America wants to include India in the 'Pax Silica' alliance for joint progress in silicon, semiconductor, and artificial intelligence technology. Speaking from the US Embassy on Monday, Gor said, "Today, I’m pleased to announce that India will be invited to join this group of nations as a full member next month."
Amid uncertainty between the two countries over tariffs, Gor claimed that the friendship between Modi and Trump will remain intact. He said, "The United States and India are bound not just by shared interest, but by a relationship anchored at the highest levels. Real friends can disagree, but always resolve their differences.” He also mentioned a recent meeting with Trump, who looked back on his February 2020 visit to India and his “friendship with the great Prime Minister of India, Prime Minister Modi.”
