Sensex, Nifty Soar Over 2.5%, Reversing The Meltdown In Previous Session

Stock Market India: Sensex surges over 1,500 points; Nifty soars about 2.6%

Indian equity benchmarks surged on Tuesday, with the Sensex jumping over 1,500 points, reversing the meltdown in the previous session, even as the risks that drove a bloodbath on Monday still at play.

The indexes ended higher for a second straight month, gaining over 3 per cent. The Nifty 50 index also ended at its highest ever monthly close on charts, driven by financial and banking stocks. 

The Indian rupee notched its biggest one-day gain in a year on Tuesday against a wobbly dollar as domestic equities saw a rush of foreign investor inflows.

Both the benchmark indexes experienced a dramatic decline of over 1 per cent in the previous session, which was caused by widespread risk-off bets around the world.

But the 30-share BSE Sensex index reversed those losses to soar 1564.45 points, or 2.7 per cent, to 59,537.07, and the broader NSE Nifty-50 index rose 446.40 points, or 2.58 per cent, to 17,759.30.

“Indian macros are improving a lot. Despite the heavy selling witnessed on Monday, foreign investor selling was negligible, which was one important trigger,” Vikram Kasat, Head Advisory at Prabhudas Lilladher, told Reuters.

Sentiment got a further boost from dollar not moving above the 20-year high against major peers, and oil prices coming off highs, he said.

The Nifty bank index rose 3.3 per cent, while the finance index gained 3.4 per cent.

“Globally, all countries are facing the churn and India seems to be the best placed jurisdiction in terms of growth and inflation outlook in FY23,” Soumya Kanti Ghosh, group chief economic adviser, State Bank of India said in a report.

“We believe the China story may now be facing clear headwinds and India is likely to benefit from such stark realities over the longer term.”

All of the 30-Sensex constituents finished in the green, with IndusInd Bank, Tech Mahindra, ICICI Bank, Kotak Mahindra Bank, Tata Steel and HDFC were among the other major winners.

Twelve of the 30 stocks that are part of the benchmark Sensex gained more than three per cent.

Shares of Bajaj Finance and Bajaj Finserv surged over 5 per cent each, after Bajaj Finserv set September 14 as the record date for sub-division and issue of bonus shares.

Tech Mahindra soared 3.96 per cent to Rs 1076.70. ICICI Bank jumped 3.72 per cent to Rs 887.60. Kotak Bank surged 3.46 per cent to Rs 1915.25.

The index heavyweight Reliance Industries Limited jumped 1.63 per cent to Rs 2639.10. ITC soared 2.20 per cent to Rs 320.30.

Shipping Corp of India rose 5 per cent after a report said Indian government will likely fast-track disinvestment.

“Compared to the sell-off in US markets last Friday, the correction in the Indian market yesterday was relatively mild. This is a reflection of the resilience of the Indian market,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, told PTI.

“This calls for some caution. There is a possibility of further correction in the market in the near term. Financials, capital goods, autos, telecom and FMCG are strong segments attracting investment,” he added.

Shanghai and Hong Kong markets closed lower, while Seoul and Tokyo’s markets closed higher.

During mid-session trades, stock markets in Europe were trading higher. On Monday, US markets had a lower closing price.

“Today’s rebound indicates the domestic economy’s resilience in comparison to its global peers. Although the markets are currently at premium valuations, continued support from foreign investors aided domestic stocks to inch higher,” said Vinod Nair, Head of Research at Geojit Financial Services.

Meanwhile, the international oil benchmark Brent crude declined 2.60 per cent to $102.52 per barrel.

India’s equity and money markets will be closed for a holiday on Wednesday.

Source link

Leave a Reply

Your email address will not be published.

%d bloggers like this: