Markets rebound after 2-day slump; RIL top boost
Benchmark indices rebounded sharply on Tuesday after sliding for the past two sessions, propelled by bargain hunting in energy, auto and consumption stocks amid a largely supportive trend overseas.
The 30-share BSE Sensex jumped 776.72 points or 1.37 per cent to end at 57,356.61. Similarly, the broader NSE Nifty rallied 246.85 points or 1.46 per cent to 17,200.80.
PowerGrid was the top gainer among the Sensex constituents, spurting 3.93 per cent, followed by Titan, M&M, IndusInd Bank, Bajaj Finance, Reliance Industries, Larsen & Toubro, SBI, Bharti Airtel and HUL.
In value terms, index heavyweight Reliance Industries accounted for the lion’s share of the benchmark’s gains.
Only four counters closed in the red — Axis Bank, Asian Paints, Maruti and TCS, dipping up to 0.70 per cent.
“Strong buying interest from domestic investors and positive global trend resulted in a rebound. But volatility persists due to lockdown in China, Russia Ukraine war and rate hikes. However, dips are encouraging investors to accumulate quality stocks.
“In a range bound market, it is advised to stick with sectors which are expected to be least impacted by inflation and rising bond yield, banking, IT, pharma and themes like green energy,” said Vinod Nair, Head of Research at Geojit Financial Services.
All BSE sectoral indices advanced, led by power (3.63 per cent), realty (3.48 per cent), utilities (3.39 per cent), auto (2.80 per cent) and consumer durables (2.22 per cent).
In the broader markets, the BSE midcap and smallcap gauges jumped as much as 1.62 per cent.
World stocks ticked higher, boosted by healthy corporate earnings, even as rising COVID-19 cases in China and fears of aggressive rate hikes by central banks capped the gains.
Elsewhere in Asia, markets in Tokyo, Hong Kong and Seoul settled in the green, while Shanghai ended lower.
Bourses in Europe were also trading higher in the afternoon session.
Stocks in the US had ended in the positive zone on Monday.
Meanwhile, international oil benchmark Brent crude dipped 0.75 per cent to USD 101.55 per barrel.
Snapping its two-day losing streak, the rupee rose by 4 paise to end at 76.60 (provisional) against the US dollar on Tuesday, following a rebound in regional currencies.
Foreign institutional investors continued their selling spree, offloading shares worth a net Rs 3,302.85 crore on Monday, according to stock exchange data
