Mumbai: Indian Benchmark Indices Rally Following Dismal Start
On Tuesday, Indian benchmark indices made a strong comeback, rebounding from a sluggish Monday. The Sensex surged by over 900 points, while the Nifty saw an increase of nearly 300 points in early morning trade.
The Indian markets opened higher despite a significant decline in the U.S. indices. Both the Nasdaq and S&P 500 dropped by at least 3% on Monday, reflecting growing recession concerns amid a slowdown in job growth in the United States.
Bharti Airtel’s shares experienced a notable rise following the release of its Q1 FY25 results. The telecommunications giant reported a remarkable 158% year-on-year increase in net profit, reaching Rs 4,160 crore, surpassing market expectations due to exceptional items.
ONGC also saw a gain of 2.5% despite reporting a 43% decline in its Q1 profit.
In international markets, Tokyo stocks advanced by over 10% as the yen eased after significant gains against the dollar. The Nikkei, which had fallen 12.40% on Monday, saw a substantial recovery.
South Korean stocks also posted a 3% gain on Tuesday, rebounding from the previous day’s severe decline caused by U.S. recession fears. The Korea Composite Stock Price Index (KOSPI) increased by 74.59 points, or 3.06%.
The MSCI Asia Pacific Index rose approximately 4% following a more than 6% drop on Monday.
Market analysts note that the correction in Indian markets on Monday was relatively mild compared to other regions. Domestic investors played a crucial role in stabilizing the market, with Domestic Institutional Investors (DIIs) purchasing Rs 9,155 crore worth of stocks, whereas Foreign Institutional Investors (FIIs) sold Rs 10,073 crore in the cash market.
Looking ahead, there are concerns that the U.S. Federal Reserve may have delayed a much-anticipated rate cut, maintaining interest rates at a two-decade high. The Fed is expected to announce potential cuts ranging from 0.25 to 0.75 percentage points at its next meeting on September 18.
