Synopsis
On April 19, Indian benchmark indices closed the week with a strong recovery, surging over 4.5%. This growth was fueled by positive domestic and global signals, with both Nifty and Sensex nearing record highs. Banking stocks thrived amid easing inflation, and optimism regarding potential RBI rate cuts further boosted market sentiment.Key Takeaways
- Indian indices surged over 4.5% in a holiday-shortened week.
- Nifty and Sensex closed near record highs.
- Banking stocks performed exceptionally well.
- Positive signals from domestic and global markets supported the rally.
- A 'buy on dips' strategy is recommended.
Mumbai, April 19 (NationPress) Indian benchmark indices concluded the week with a remarkable recovery, surging over 4.5 percent — propelled by encouraging signals from both domestic and global factors, experts reported on Saturday.
The benchmark indices opened significantly higher and maintained momentum throughout the week.
As the week drew to a close, both the Nifty and Sensex finished near their peaks at 23,851.65 and 78,553.20, respectively.
“The Nifty index has been fluctuating within a range of 21,700–23,800 for the last couple of months and has now reached the upper limit of this range. It has also regained crucial moving averages — the 100 and 200-day EMAs,” stated Ajit Mishra, SVP, Research, Religare Broking Limited.
“With the ongoing positive momentum, there is potential for the index to target the 24,250–24,600 range in the upcoming weeks,” he added.
Banking stocks emerged as the top performers, rallying thanks to easing retail inflation data and a favorable monsoon forecast.
This sparked optimism regarding potential rate cuts by the Reserve Bank of India (RBI). The positive sentiment was further enhanced by hopes surrounding tariff deferrals and exemptions for select products, raising expectations that trade tensions could ease in the future.
There were no significant negative surprises from global markets, which also contributed to sustaining the bullish sentiment. These developments supported the rally throughout the week.
“The decrease in the volatility index (India VIX) also indicates a decline in market uncertainty following a period of recent volatility,” Mishra commented.
“Looking forward, the current recovery trend appears likely to persist. A ‘buy on dips’ strategy is advisable as long as the Nifty remains above the 23,000 level,” he added.
According to a Bajaj Broking Research report, volatility is expected to stay elevated amid tariff-related developments and the advancement of the Q4 earnings season.
“Any dips in the coming week should be viewed as a buying opportunity, with key support established at 23,200 levels,” the report concluded.
