Mkts Rebound As Investors Get Into Bargain Hunt

The Indian market demonstrated optimism following the recent sell-off. The lower-than-expected US PCE print bolstered investor sentiment in interest rate-sensitive sectors. Broad-based buying was observed, with the metals sector notably benefiting from the anticipated in-crease in steel import taxes, said Vinod Nair, head (research), Geojit Financial Services

Mumbai: Equity benchmark indices Sensex and Nifty rebounded sharply on Monday after five days of steep decline amid value buying at lower levels and a supportive trend in global markets. Besides, bargain hunting in blue chip stocks like ITC, HDFC Bank and Reliance Industries added to the optimism in the equity market, traders said. The 30-share BSE benchmark Sensex jumped 498.58 points or 0.64 per cent to settle at 78,540.17. During the day, it soared 876.53 points or 1.12 per cent to 78,918.12. The NSE Nifty surged 165.95 points or 0.70 per cent to 23,753.45.

“The Indian market demonstrated optimism following the recent sell-off. The lower-than-expected US PCE print bolstered investor sentiment in interest rate-sensitive sectors. Broad-based buying was observed, with the metals sector notably benefiting from the anticipated in-crease in steel import taxes. Despite the positive market sentiment, the short-term outlook is ex-pected to remain sideways due to a lack of new catalysts and the impact of the festive season and holidays,” said Vinod Nair, head (research), Geojit Financial Services.

The BSE midcap gauge climbed 0.10 per cent, while smallcap index declined 0.60 per cent.

“Indian equity markets rebounded on Monday, snapping a five-day losing streak. This recovery was driven by gains in financial and IT sectors, with HDFC Bank shares rising nearly two per cent. The positive sentiment was influenced by softer US inflation data, which buoyed regional markets. Investors are now focusing on the Reserve Bank of India’s forthcoming monetary policy and the Union Budget 2025, anticipating policy measures that could further support economic growth and market stability. Over the next few days, trading volumes are expected to be thin due to this being a holiday-shortened week,” added Vikram Kasat, head (advisory), PL Capital - Prabhudas Lilladher.

Among sectoral indices, realty jumped 1.39 per cent, bankex (1%), metal (0.84%), oil & gas (0.83%), FMCG (0.75%), energy (0.67%) and services (0.64%).

From the 30 blue-chip stocks, ITC, Tech Mahindra, HDFC Bank, Reliance Industries, IndusInd Bank, Titan, State Bank of India and ICICI Bank were the biggest gainers.