Mumbai: Equity Indices Sensex and Nifty Rebound After Recent Decline
Mumbai: Equity market benchmark indices Sensex and Nifty showed a notable rebound in early trading on Friday, recovering from a period of five consecutive days of declines. This upward movement was supported by value buying at lower levels and a rally in major blue-chip stocks, including Infosys, Tata Consultancy Services, and Reliance Industries.
The 30-share BSE Sensex rose by 235.23 points to reach 80,275.03, while the NSE Nifty increased by 86.6 points to settle at 24,492.70.
Among the notable gainers in the Sensex pack were Bharti Airtel, Tata Steel, Infosys, JSW Steel, Bajaj Finance, HCL Technologies, Tata Consultancy Services, and Reliance Industries. Conversely, Tech Mahindra, HDFC Bank, Nestle, and Maruti were identified as laggards.
The resilience of the Indian bull market has been highlighted by its ability to overcome various concerns, including political uncertainties, budgetary issues, and corrections in global markets. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked that the market’s strategy of buying on dips continues to be effective.
In the broader Asian markets, Seoul, Tokyo, and Hong Kong reported gains, while Shanghai experienced a decline. The US markets, however, ended mostly lower on Thursday.
Global oil benchmark Brent crude saw a marginal increase of 0.19 percent, trading at USD 82.53 per barrel. Additionally, Foreign Institutional Investors (FIIs) sold equities worth Rs 2,605.49 crore on Thursday, as per exchange data.
Prashanth Tapse, Senior Vice President of Research at Mehta Equities Ltd, noted that the 2.8 percent growth in the US economy for the second quarter indicates it is unlikely to enter a recession. He anticipates that the Federal Reserve may begin reducing interest rates by September due to easing inflationary pressures.
Despite a sharp decline in intra-day trading on Thursday, the BSE benchmark managed to recover some of its losses, closing 109.08 points or 0.14 percent lower at 80,039.80. Similarly, the NSE Nifty ended down by 7.40 points or 0.03 percent at 24,406.10.
Over the past five days, the BSE Sensex has dropped 1,303.66 points or 1.60 percent, while the NSE Nifty has decreased by 394.75 points or 1.59 percent.
