Bulls return to Dalal Street; analysts see Nifty heading towards 23,800 Indian stock markets showed a strong rebound on Wednesday, marking the second consecutive day of gains as investors regained confidence. The recovery came amid cooling crude oil prices and ongoing diplomatic efforts between the US and Iran to de-escalate tensions in West Asia. Analysts suggest the upward trend may continue, with the Nifty 50 index potentially rising to 23,800 in the coming days. Mumbai-based indices, including the NSE Nifty and BSE Sensex, closed higher after two sessions of gains. The Nifty surged 394 points, or 1.7%, to 23,306.45, while the Sensex climbed 1,205 points, or 1.6%, to 75,273.45. Over the past two sessions, the indices have recouped nearly 3.5% each, reversing a significant portion of the losses incurred since the start of the West Asia conflict. The market capitalization of Indian equities has gained approximately Rs 16.15 lakh crore during this recovery. The rebound follows a period of volatility triggered by the conflict, during which the Nifty and Sensex had fallen nearly 10.6% each from their levels on February 28. Since the war began, India’s market cap has declined by ₹32.87 lakh crore. However, the recent stabilization in global oil prices and optimism about diplomatic progress have bolstered investor sentiment. Analysts noted that the recovery is likely to persist as long as the Nifty remains above key support levels. Pankaj Pandey, head of fundamental research at ICICI Direct, stated that the de-escalation in the conflict suggests the worst may be behind us, though a formal ceasefire remains pending. He emphasized that markets are poised for further gains unless new adverse developments emerge.#nifty_50 #bse_sensex #west_asia #motilal_oswal #icici_direct
