Sensex and Nifty Rebound After Sharp Correction in Previous Trade
The market saw strong buying interest in key stocks, including Reliance Industries and HDFC Bank, propelling both benchmark indices into the green.
Mumbai: In a positive market reversal, Sensex and Nifty bounced back during early trading on Friday, following a sharp correction in the previous session.
The market saw strong buying interest in key stocks, including Reliance Industries and HDFC Bank, propelling both benchmark indices into the green.
At the opening of trade, the BSE Sensex surged by 216.18 points, reaching 79,259.92, while the NSE Nifty gained 78.6 points, climbing to 23,992.75. The recovery came after a significant dip in the previous trading session when both indices witnessed sharp declines.
Table of Contents
Key Gainers and Losers in Early Trading
Among the 30-share Sensex pack, Mahindra & Mahindra, Adani Ports, Bharti Airtel, Larsen & Toubro, Reliance Industries, Bajaj Finserv, Bajaj Finance, and HDFC Bank emerged as the top gainers, driving the market’s early rebound. These stocks were in demand due to their strong fundamentals and recent positive earnings reports.
On the other hand, some stocks were in the red during early trade. Power Grid, ITC, Tata Consultancy Services (TCS), and Maruti were among the major laggards, reflecting a slowdown in sector-specific performance.
Global Market Impact
In the Asian markets, Shanghai and Hong Kong posted positive gains, indicating optimism in regional markets. However, Seoul and Tokyo were trading lower, reflecting the mixed sentiment across different global markets. The US stock markets were closed on Thursday for the Thanksgiving holiday, leading to a lack of direction from the world’s largest economy.
Foreign Institutional Investor Activity
Foreign Institutional Investors (FIIs) were active in the Indian stock market, but their recent actions indicated a cautious approach. On Thursday, FIIs offloaded equities worth Rs 11,756.25 crore, according to exchange data. This large sell-off had a negative impact on the market, contributing to the earlier correction in the Sensex and Nifty. However, the market showed resilience and quickly rebounded with fresh buying from domestic investors.
Brent Crude Prices and Market Sentiment
Global oil prices remained stable, with Brent crude rising by 0.14 percent to USD 73.38 per barrel. Oil prices are a crucial factor for Indian markets as the country is a major importer of crude. Stable oil prices are likely to ease inflationary pressures, contributing positively to market sentiment.
Sensex and Nifty Post Sharp Declines in Previous Trade
Despite the early recovery, the Sensex had experienced a steep fall in the previous session. On Thursday, the BSE Sensex plummeted by 1,190.34 points or 1.48 percent, closing at 79,043.74. Similarly, the NSE Nifty fell by 360.75 points or 1.49 percent, ending the day at 23,914.15. The decline in global market indices and the selling pressure from FIIs contributed to the correction.
Also Read | Indian Stock Market Opens Flat, Realty Stocks Shine Amid Mixed Trading
However, the market’s early bounce-back on Friday indicates that investor sentiment remains resilient, and there is optimism for a recovery as long as key stocks like Reliance and HDFC Bank continue to lead the rally.
Conclusion
The Sensex and Nifty have staged a recovery after a sharp decline in the previous session, driven by buying in large-cap stocks. While global cues remain mixed, the market is showing signs of resilience with positive movements in key sectors. The participation of domestic investors and a stable oil price outlook are expected to continue supporting the market’s recovery in the short term.
