Sensex and Nifty Rebound After Previous Session Slump: Banking Stocks Lead Recovery
Supported by value buying at lower levels, a rally in blue-chip banking stocks, and positive cues from US markets, the domestic equities rebounded with a bullish sentiment.
Mumbai: The Indian stock markets showed resilience on Friday, November 22, as benchmark indices Sensex and Nifty staged a strong recovery in early trade following a sharp fall in the previous session. Supported by value buying at lower levels, a rally in blue-chip banking stocks, and positive cues from US markets, the domestic equities rebounded with a bullish sentiment.
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Sensex and Nifty Early Gains
- BSE Sensex: Jumped 506.58 points or 0.66%, reaching 77,662.37 in early trade.
- NSE Nifty: Climbed 162.9 points or 0.70%, touching 23,512.80.
This recovery was primarily driven by gains in banking, financial, and technology stocks, with several heavyweights leading the charge.
Top Gainers and Losers
Biggest Gainers (Sensex Pack):
- State Bank of India (SBI)
- ICICI Bank
- IndusInd Bank
- Tata Motors
- Power Grid
- Bajaj Finance
- Bajaj Finserv
- Tech Mahindra
Major Laggards:
- Adani Ports
- Axis Bank
- Mahindra & Mahindra
- Titan
- Sun Pharma
Adani Group Stocks Under Pressure
Despite the broader market recovery, Adani Group stocks faced significant pressure. Eight out of the ten listed companies from the group traded lower, extending losses from the previous session. This followed allegations of bribery and fraud against billionaire industrialist Gautam Adani in the United States.
Institutional Activity in the Market
The trading session saw contrasting actions by institutional investors:
- Foreign Institutional Investors (FIIs): Offloaded equities worth ₹5,320.68 crore on Thursday, contributing to the market’s previous day slump.
- Domestic Institutional Investors (DIIs): Countered with net purchases of shares worth ₹4,200.16 crore, supporting market recovery.
Global Market Trends Supporting Recovery
Asian Markets:
- Positive Trading: Seoul and Tokyo.
- Declines: Shanghai and Hong Kong.
US Markets:
- Ended higher on Thursday, providing a favorable backdrop for Indian equities.
Oil Prices:
- Global oil benchmark Brent crude gained 0.26%, trading at USD 74.42 per barrel, signaling stable commodity markets.
Previous Session Recap
On Thursday, the Indian stock market witnessed a sharp decline:
Also Read | Sensex and Nifty Rebound Strongly in Early Trade: Key Insights and Market Highlights
- Sensex: Dropped 422.59 points (0.54%) to settle at 77,155.79.
- Nifty: Declined 168.60 points (0.72%) to close at 23,349.90.
The fall was attributed to heavy selling by FIIs and global uncertainties impacting investor sentiment.
Key Market Drivers for Friday’s Recovery
- Value Buying: Investors leveraged the lower valuations from Thursday’s sell-off to accumulate shares, particularly in banking and financial sectors.
- Banking Stocks Rally: Large-cap banks like SBI and ICICI Bank saw renewed buying interest, bolstering the indices.
- Global Cues: Positive trends in US markets and selected Asian indices contributed to a more optimistic outlook.
- DII Support: Continued buying by domestic institutional investors added stability to the market.
Outlook for Investors
The recovery in Sensex and Nifty highlights the underlying strength of the Indian market despite intermittent volatility caused by global and domestic events. However, ongoing issues with Adani Group stocks and FII selling could pose challenges in the short term.
Key Factors to Watch:
- Developments in the Adani Group case and its impact on market sentiment.
- FII activity, as sustained outflows could dampen the rally.
- Performance of global markets and macroeconomic indicators like oil prices and inflation data.
Conclusion
The rebound in Sensex and Nifty on Friday underscores the resilience of the Indian equity market, driven by strong domestic investor participation and value buying. Banking and financial stocks remain the key growth drivers, while challenges surrounding select sectors like Adani Group stocks could influence future market dynamics.
Investors should monitor global cues, institutional activity, and sector-specific developments to navigate the market effectively. Stay tuned for more updates on India’s equity market trends!
