The Indian stock market benchmarks, the Sensex and the Nifty 50, rallied dramatically on Tuesday, August 6, a day after suffering hefty losses of 3%. Both indexes rose more than 1% in early trade despite conflicting indications.
The Sensex began at 78,981.97, up from its closing value of 78,759.40, then surged by more than 1% to reach 79,852.08. Conversely, the Nifty 50 began the day at 24,189.85, up from its closing value of 24,055.60, and gained more than 1% to retake the 24,382.60 mark.
The BSE Midcap and Smallcap indices increased by two percent each, indicating that the market’s mid and smallcap segments enjoyed larger increases.
Investors gained over ₹7 lakh crore in value in less than 30 minutes of trading as the total market capitalization of the companies listed on the BSE increased to approximately ₹449 lakh crore from approximately ₹442 lakh crore in the previous session.
After rising by 43% the previous session, the volatility index India VIX saw a sharp decrease of about 14%. The fear gauge’s abrupt swings reveal the level of short-term market uncertainty.
Why is the Indian stock market rising today?
Fears of an impending US recession sent the markets into meltdown during the previous day, following lower-than-expected July payroll figures. According to experts, it is premature to declare that the greatest economy in the world is headed for a recession. The US economy is not clearly exhibiting any signs of a severe downturn, even though there may be some indications of a slowdown.