Stock Market: Stock market gains due to technical stocks

The benchmark indices recorded an increase for the second consecutive day on Wednesday as investors considered the recent decline to be quite high and purchased in the shares with beaten evaluation. The benchmark Nifty-50 index climbed 206 points to close at 23,163 and reached 1.51 percent by two days. On Monday, the index closed at around 22,829 at a seven -month low.

Extensive markets also recorded a rise and Nifty Midcap 100 and Nifty Smallcap 100 rose by 2.3 percent and 3.3 percent respectively. The Sensex climbed 632 points to close at 76,533. Technical shares contributed the most to the Sensex growth. Infosys, who climbed 2.8 per cent, was the highest in the Sensex growth, followed by Jomato (6.8 per cent) and TCS (1.5 per cent).

The Nifty IT index rose 2.62 per cent on Wednesday after 4 per cent breakdown in the last two trading sessions when global technical stocks recorded improvement as concern over low -cost new Chinese AI model was reduced. The banking and financial service sector shares also improved the index that resorted to the reports of cash inserting in the banking system.

The auto index also increased after an increase in Bajaj Auto and TVS motor as they recorded better quarterly profits and predicted proper demand and export growth. Maruti Suzuki’s stock broke more than one per cent as the company’s quarterly results were inferior to the market estimate due to major discounts. Experts said that the mood of investors was cautious amidst the continuous selling of foreign portfolio investors. On Wednesday, FPI sold Rs 2,586 crore, while domestic institutions bought shares worth Rs 1,793 crore.

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Vinod Nair, Head of Research of Geojit Financial Services, said that the Indian market has demonstrated strength in the upcoming Union Budget with the expectations of measures to encourage consumption and employment generation. Small and midcap stocks experienced a relief boom, while the index valuation of the major indices is trading at an average of 5 years which seems attractive with a strong long -term domestic scenario.

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