After falling in 5 consecutive sessions, the stock markets in India today managed to get itself out of the bear hug. With the global scenario improving, investors have again started exploring low-level buying opportunities. This was evident today, as both BSE Sensex and Nifty broke their 5-day losing streak. The BSE Sensex registered its biggest daily gain in this month, as it rose by 235.44 points to close at 31,449.03. The top gainers include Cipla (up 5.03 per cent), Sun Pharma (up 4.49 per cent), Tata Steel (up 4.17 per cent) and Adani Ports (up 3 per cent). Nifty rose 83.35 points to close at 9794.15. This is an increase of around 0.86 percent.
The uptrend in the stock markets has been attributed to the easing of global political situation. Earlier, the markets had fallen due to the aggressive posturing by North Korea, but now the fears related to a nuclear war between US and North Korea have largely subsided. Another reason is that some buying opportunities have emerged due to the continuous fall in share prices. A section of investors feels that the days after continuous losses are a good period to invest in stocks. Robust performances by companies also helped the stock markets register gains in today’s trading. For example, Cipla and Tata Power have reported an increase in profitability in the last quarter. Fears about a Federal Reserve interest rate hike this year have also been eliminated, owing to softer than expected US inflation data for July. This has also helped stock markets globally including India.