Market Rebounds as Sensex and Nifty Break Three-Day Losing Streak
Tops 21,600 In a positive turn of events on Friday, the key equity benchmarks, Sensex and Nifty, managed to halt their three-day decline, riding on a global upswing and increased buying across various sectors. The S&P BSE Sensex surged by 496 points, closing at 71,683, while the NSE Nifty50 saw an uptick of 160 points, settling at 21,622.
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Among the 30-share Sensex components, 26 stocks concluded the day in positive territory. Noteworthy gainers included Bharti Airtel (3.52%), NPTC, TechM, Tata Steel, M&M, and UltraCemco. On the flip side, IndusInd Bank, HDFC Bank, Kotak Bank, and SBI experienced losses.
Expanding the scope to broader markets, the BSE Midcap and BSE Smallcap indices registered increases of 1.69% and 1%, respectively.
Examining specific sectors, all indices closed in the green, with Nifty Metal and FMCG indices witnessing a 1.3% rally each. The Nifty PSU Bank index also rose by 1%, while the Nifty Media index incurred a 1.2% decline.
In the preceding session on Thursday, the S&P BSE Sensex had dipped by 314 points, settling at 71,187, and the NSE Nifty50 had closed at 21,462, marking a decline of 110 points.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the market’s recovery to a “buy on dips” strategy and positive global signals. Despite the broad-based rebound, investors expressed concerns, anticipating a moderation in the rally. Nair noted, “FIIs persist with risk-off sparked by the likelihood that interest rates may not moderate and domestic earnings growth can slow down as per the initial Q3 results announced.”
On the global front, Seoul and Tokyo’s markets closed in the green, while Shanghai and Hong Kong witnessed declines. European markets showed gains, and the US markets closed positively on Thursday.
The global oil benchmark, Brent crude, saw a 0.63% increase, reaching $79.60 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 9,901.56 crore on Thursday, according to exchange data.
In the currency market, the rupee strengthened by 7 paise, settling at 83.06 (provisional) against the US dollar on Friday. This gain was attributed to robust buying in domestic equity markets and the weakened American currency overseas. However, the surge in crude oil prices and foreign capital outflows tempered the rupee’s sharp gain, as noted by forex traders.
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Market data is subject to change, and investors are advised to conduct thorough research before making financial decisions.
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