Indian stock markets saw a strong recovery on November 19, 2024, breaking a seven-session losing streak. The BSE Sensex climbed 1,112.64 points, or 1.43%, to reach an intraday high of 78,387.63, while the Nifty50 jumped 326.85 points, or 1.39%, to hit 23,780.65. Analysts attributed this rebound to a positive global market sentiment following recent declines.
“The recovery in the markets is merely a natural rebound following a seven-day losing streak. The primary driver for this recovery appears to be the positive performance of global markets,” said Ambareesh Baliga, an independent market analyst.
Broader Markets and Sectoral Gains
Mirroring the benchmarks, broader indices also rallied. The Nifty MidCap rose 1.83% to 55,037.15, while the Nifty SmallCap surged 2.18% to 17,889.50. Sectoral performance was equally optimistic, with Nifty Media emerging as the top gainer, up 3.7% to 1,969.30. Other sectors, including IT, Auto, PSU Bank, Realty, Consumer Durables, and Oil & Gas, recorded gains between 1.83% and 2.23%.
Global Markets Support Rebound
Asian markets largely traded higher, reflecting overnight gains on Wall Street. Japan’s Nikkei 225 rose 0.49%, and South Korea’s Kospi edged up 0.07%. Australia’s ASX 200 advanced 0.89%, while Hong Kong’s Hang Seng dipped slightly by 0.04%, and China’s CSI 300 slipped over 1%.
In the US, the Nasdaq Composite rebounded 0.6%, supported by Tesla’s stock rally. The S&P 500 gained 0.39%, while the Dow Jones Industrial Average saw a marginal decline of 0.13%.
Technical Indicators Show Signs of Recovery
Anand James, Chief Market Strategist at Geojit Financial Services, noted that the Nifty’s attempt to recover lacked momentum initially but displayed potential for a turnaround. He pointed to the Relative Strength Index (RSI) as indicating a possible bottoming out. “The immediate upside target remains capped at 23,733–23,788 for now, while holding above 23,565 is crucial to sustain recovery,” he added.
Relief in FII Selling
A pause in foreign institutional investor (FII) selling also contributed to the recovery. Analysts observed that the average net sales by FIIs over the last two sessions were significantly lower, at ₹1,626.63 crore, compared to the ₹3,075.92 crore average of the previous nine sessions.
