Sensex and Nifty Rebound After Two-Day Slump Amid Asian Market Gains
After a two-day sharp decline, Indian equity benchmark indices Sensex and Nifty staged a rebound in early trade on Monday, driven by positive cues from Asian markets and stable global sentiment.
Mumbai: After a two-day sharp decline, Indian equity benchmark indices Sensex and Nifty staged a rebound in early trade on Monday, driven by positive cues from Asian markets and stable global sentiment. The recovery came despite persistent foreign investor selling and ongoing geopolitical tensions in the Middle East.
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The BSE Sensex surged 288.79 points to reach 81,407.39, while the NSE Nifty rose 98.9 points to 24,817.50 in morning deals.
Power Grid, TCS, and Infosys Lead Gainers; Tata Motors, Axis Bank Lag
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Among the top gainers on the Sensex were:
- Power Grid
- UltraTech Cement
- Bharti Airtel
- Larsen & Toubro
- Asian Paints
- NTPC
- Tata Consultancy Services (TCS)
- Infosys
Meanwhile, Tata Motors, Axis Bank, Adani Ports, and Kotak Mahindra Bank were among the top laggards during early trading.
Global Cues: Asian Markets Trade Higher, Crude Oil Rises
Asian stock markets provided much-needed relief with South Korea’s Kospi, Japan’s Nikkei 225, and Shanghai’s SSE Composite Index trading in the green. Hong Kong’s Hang Seng, however, remained under pressure.
Brent crude, the global oil benchmark, climbed 0.73% to USD 74.77 per barrel amid Middle East tensions, though analysts believe that a major disruption like the closure of the Strait of Hormuz by Iran is unlikely at this stage.
FIIs Remain Net Sellers Amid Volatility
Despite Monday’s uptick, Foreign Institutional Investors (FIIs) continued to offload shares, selling ₹1,263 crore worth of equities on Friday, according to exchange data. The selling trend reflects ongoing caution among global investors amid geopolitical uncertainty and oil price fluctuations.
“Interestingly there is no panic in equity markets. Markets will be severely impacted only if Iran closes the Strait of Hormuz triggering a huge spike in crude. This appears to be a low probability event now,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Market Recap: Previous Losses and Current Recovery
On Friday, the Sensex fell 573.38 points (0.70%) to close at 81,118.60, while the Nifty dropped 169.60 points (0.68%) to 24,718.60. Over the past two sessions, the Sensex lost 1,396.54 points (1.69%), and the Nifty declined 422.8 points (1.68%).
