Markets bounce back after 5-day rout; Sensex jumps 574 points

Business


Benchmark indices bounced back on Wednesday after falling for five straight sessions, with the Sensex climbing 574.35 points, helped by buying in Reliance Industries and recovery in Infosys, TCS and HDFC twins.

A largely positive trend in global equities also helped the benchmarks get back on their feet.

Halting its five-day fall, the BSE Sensex jumped 574.35 points or 1.02% to finish at 57,037.50. During the day, the index rallied 753.36 points or 1.33% to 57,216.51.

The NSE Nifty surged 177.90 points or 1.05% to 17,136.55.

“With support from recovery in beaten-down HDFC stocks and the IT sector, the market countered yesterday’s selloff. Foreign investors are pumping out funds in large quantities while support from DIIs is helping the market to partially balance the pressure,” according to Vinod Nair, Head of Research at Geojit Financial Services.

From the 30-share Sensex pack, UltraTech Cement, Maruti, Reliance Industries, Asian Paints, TCS, Hindustan Unilever Limited, Bharti Airtel, HDFC and Dr Reddy’s were among the major gainers.

In contrast, Bajaj Finance, ICICI Bank, Bajaj Finserv, Tata Steel and ITC were among the prominent laggards.

Both the benchmark indices had closed in the red for the fifth straight session on Tuesday. Sensex had lost a hefty 2,984.03 points in five sessions, while the Nifty shed 825.70 points.

Elsewhere in Asia, markets in Hong Kong, Seoul and Shanghai settled lower, while Tokyo ended with gains.

Markets in Europe were trading higher in the afternoon session.

Stocks in the U.S. had ended significantly higher on Tuesday.

International oil benchmark Brent crude gained 0.89% to $108.2 per barrel.

Foreign institutional investors continued their selling spree, offloading shares worth a net ₹5,871.69 crore on Tuesday, according to stock exchange data.



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