Benchmark stock market indices BSE Sensex and Nifty 50 rebounded by more than 1 per cent on Monday, recovering after suffering heavy losses over the previous three trading sessions, helped by value buying in blue-chip banking stocks.
The 30-share BSE Sensex surged 938.93 points, or 1.26 per cent, to close at 75,502.85. During the session, the index touched a high of 75,805.27 and a low of 73,949.76.The 50- share Nifty 50 climbed 257.70 points, or 1.11 per cent, to finish at 23,408.80.
Among the 30 Sensex constituents, UltraTech Cement led the gains with a rise of 4.22 per cent. Other major gainers included Trent Ltd, HDFC Bank, Mahindra & Mahindra, Eternal Ltd, Bajaj Finance, ITC Ltd, Tata Steel, and State Bank of India.
On the other hand, Bharat Electronics, Sun Pharmaceutical Industries, Power Grid Corporation of India, and Bharti Airtel were among the major laggards.
“The equity market staged a late-session rebound, supported by value buying in domestically oriented sectors such as auto, banking and FMCG, representing a relief rally after the recent sell-off,” said Vinod Nair, Head of Research at Geojit Investments Limited.
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He added that in the near term, investor sentiment would depend on developments around the Strait of Hormuz, where any easing of supply chain disruptions could provide further support to markets.
The BSE MidCap Select Index slipped 0.36 per cent, while the BSE Smallcap Select Index edged down 0.25 per cent. Among sectoral indices, the BSE Top 10 Banks Index gained 1.61 per cent, followed by the BSE Private Banks Index (1.38 per cent), BSE Financial Services Index (1.32 per cent), BSE Auto Index (1.23 per cent), BSE Bankex (1.08 per cent), and the BSE FMCG Index (0.94 per cent).
However, the BSE Oil & Gas Index dropped 2.29 per cent, followed by the BSE Healthcare Index, BSE Realty Index and the BSE Energy Index.
“Markets began the week on a volatile note but eventually gained over a per cent, snapping their recent losing streak as investors engaged in bargain buying,” said Ajit Mishra, Senior Vice President (Research) at Religare Broking Ltd.
He noted that the rebound largely reflected investors taking advantage of lower levels to accumulate select large-cap stocks after the sharp correction. However, the broader sentiment remained cautious due to ongoing geopolitical tensions in the Middle East and rising crude oil prices, which have raised concerns about inflation and India’s import bill.
Additionally, continued selling by Foreign Institutional Investors and volatility in the rupee are keeping risk appetite in check, he said.
In Asian markets, Nikkei 225 in Japan and the SSE Composite Index in Shanghai ended lower, while Kospi in South Korea and Hang Seng Index in Hong Kong closed higher. European markets were trading mostly in the red. The S&P 500 and other key United States indices had ended lower on Friday.
Meanwhile, Brent Crude, the global oil benchmark, rose 1.41 per cent to USD 104.4 per barrel. According to exchange data, Foreign Institutional Investors sold equities worth ₹10,716.64 crore on Friday. In contrast, Domestic Institutional Investors purchased shares worth ₹9,977.42 crore.
On Friday, the BSE Sensex had closed at 74,563.92, down 1,470.50 points or 1.93 per cent, while the Nifty 50 plunged 488.05 points, or 2.06 per cent, to end at 23,151.10.
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