Indian Stock Market Bounces Back After Post-Budget Losses

The Indian stock market closed in green, recovering from post-budget losses. Sensex rose by 1.62% and Nifty by 1.76%, both seeing a significant rally after recent declines due to tax hikes and lower-than-expected earnings. Key sectors and market experts suggest sustained upward trend possibilities.

In a remarkable recovery, the Indian stock market ended the week in green after enduring five consecutive days of losses post-budget. The Sensex soared by 1,292.92 points, or 1.62%, closing at 81,332.72. Similarly, the Nifty climbed 428.75 points, or 1.76%, ending at 24,834.85, at one point touching an all-time high of 24,853.10 points. All market sectors closed positively.

The market suffered earlier in the week due to heavy profit-booking following the budget announcement on July 23, which included a tax hike on derivatives trading and capital gains. Earnings from major banks also fell short of expectations, adding to the market's woes. Experts like Ajay Bagga believe the budget impact has been absorbed, shifting focus to India's growth potential and global influences.

Market analyst Hrishikesh Yedve highlighted that both Sensex and Nifty experienced profit booking on Budget Day but rebounded as volatility decreased, forming a bullish hammer pattern on daily charts. Meanwhile, VLA Ambala of Stock Market Today predicted the market might hit a new record high in the next 10 days, urging investors to look for buying opportunities during any dips.

(With inputs from agencies.)