Amid mixed trends in global markets, Indian stock markets saw a strong recovery from the lowest level on Thursday (April 17) and traded in red mark for the fourth consecutive day.
Due to weak signals from global markets, both major indices Nifty-50 and Sensex started the day in a disappointing manner. The main reason for this is the ongoing tariff struggle between the US and China and a warning about the possible economic results of the tariff by Jerome Powell, chairman of the US Federal Reserve.
The BSE Sensex opened 76 points to 76,868 and soon came to a low of 76,666. This was followed by a strong improvement in the Sensex and it rose 1,507 points to the highest level of 78,173. At 1 pm, the Sensex was trading around 78,160 by climbing 1,120 points. Similarly, the NSE Nifty 50-day index rose to a high level of 23,748 from the lowest level of 23,299. The Nifty was trading up 305 points or 1.3% to 23,744.
With this edge, the Sensex and Nifty appeared on the green mark for the fourth consecutive day. During this period, the Sensex has increased by more than 4,000 points. The Nifty recorded an increase of about 1,000 points.
The major reasons for stock market boom:
1. Short-coverings promoted rally
Analysts believe that this stock has been more sales due to the continuous decline in the market in the last few months. But in recent times, short-coverings have started due to the news of possible softening in the global trade war.
According to Motilal Oswal’s technical research head Ruchit Jain, after the reforms started in October 2024, now the possibility of returns is more visible in some areas. Along with this, the latest FII shopping and short covering in index futures have further strengthened the perception of rapid perception. From a technical point of view, the next resistance to Nifty is 23,800–23,900 in the region. If the Nifty crosses this level decisively, the market will be strengthened further.
2. FII strong purchases
Foreign institutional investors (FIIs) have made major purchases in the cash market in the last two business seasons. In the last two days, he has bought shares worth ₹ 10,000 crore. It also included the third largest single-day purchase of the calendar year on Tuesday.
3. Effect of America-China trade stress
US President Donald Trump has threatened to impose tariffs up to 245% on imported goods from China. This step is taken by China after imposing a tariff of up to 84% on American goods. The “counter -attack” is going on between the two countries on the trade front.
Recently, Trump suspended him for 90 days after announcing additional tariffs on several countries. However, China was not given this discount. Analysts believe that Indian companies may benefit from the US-China trade war.
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