Mkts Rebound On RBI’s Liquidity Push

Investors’ wealth further falls by Rs 1.30 lakh cr

Despite recovery on the domestic stock markets, the market capitalisation (mcap) of BSE-listed companies fell Rs1,30,328.02 crore to Rs4,09,00,871.46 crore (Rs409 lakh cr or $4.73 trn)

Mumbai: Snapping the two-day decline, benchmark stock indices Sensex and Nifty rebounded on Tuesday following intense buying in banking and rate-sensitive stocks as the RBI decided to inject liquidity into the financial system.

The 30-share Sensex climbed 535.24 points or 0.71 per cent to settle at 75,901.41. During the day, the benchmark surged 1,146.79 points or 1.52 per cent to hit a high of 76,512.96. The broader 50-share NSE Nifty appreciated by 128.10 points or 0.56 per cent to close at 22,957.25. In the intraday session, the 50-share NSE Nifty climbed 308.8 points or 1.35 per cent to 23,137.95. The market capitalisation (mcap) of BSE-listed companies fell Rs1,30,328.02 crore to Rs4,09,00,871.46 crore or $4.73 trillion.

“The national benchmark indices demonstrated optimism today, primarily driven by gains in the banking sector following the RBI’s announcement of open market interventions to address liquidity concerns. Large-cap stocks outperformed, as their valuations have now reached fair levels and are further supported by expectations that the market correction is nearing its bottom,” said Vinod Nair, head (research), Geojit Financial Services.

Despite, the markets settled on a positive note, 2,666 shares declined, 1,308 advanced and 110 stocks remain unchanged.

“Markets witnessed a relief rally after the recent weakness, but undertone remained bearish as most of the sectors ended in red which pulled down benchmark indices from the day’s high levels. Investors remain cautious due to growing global uncertainty and disappointing domestic economic indicators. However, optimism in banking, auto and realty aided sentiment even as worries over Trump’s trade policies and fading chances of any rate cut in next month’s credit policy weighed,” said Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.

Among the sectoral indices, Bankex climbed the most by 1.49 per cent, Financial Services by 1.45 per cent, Realty by 1.27 per cent, Auto by 1.16 per cent, and Consumer Discrectionary rose by 0.23 per cent. Healthcare, Industrials, Utilities, Capital Goods, Power, Oil & Gas, Energy, IT and Focused IT were among the laggards.

Among the Sensex shares, Bajaj Finance, Axis Bank, Bajaj Finserv, HDFC Bank, Tata Motors, Tata Steel, ICICI Bank, Mahindra & Mahindra, Zomato, IndusInd Bank, Maruti Suzuki India and Bharti Airtel were the major gainers. Sun Pharmaceutical, Larsen & Toubro, ITC, HCL Technologies, NTPC, Power Grid, Nestle India, Tata Consultancy Services, and Asian Paints were among the laggards.

In the broader market, Aditya Birla Sun Life AMC shares declined 4.82 per cent to close at Rs612.30 apiece on BSE after the company’s December quarter earnings failed to cheer investors.