Indian markets stage sharp recovery, close higher

After declining initially, the markets staged a smart recovery and closed higher. The NIFTY50 (+0.7%) index managed to close above the 22,200 mark, while SENSEX (+0.7%) gained 535 points. Gains in index heavyweights like ITC, Tata Consultancy Services and Reliance Industries propelled the markets higher.

The market breadth was also positive. Out of the NIFTY50 universe, 35 stocks advanced. The broader markets also closed in the green. The NIFTY Midcap 100 index outperformed the benchmark indices, gaining around 1%. The NIFTY Smallcap Index also closed 0.6% higher today.

Meanwhile, India VIX, which is a measure of volatility of the domestic markets, was down 4.5%.

On the sectoral front, IT and Auto were the top gainers, rising 1.9% and 1.6%, respectively. Whereas, Bank (-0.2%) and Financial Services (-0.1%) stocks were the top losers.

Experts state that the sharp recovery in domestic markets was supported by positive global cues like strong US tech earnings. Besides this, India’s business activity rose to a seven month high, according to a survey.