Markets rebound after sharp sell-off; Sensex rises over 300 points, Nifty crosses 23,200 - ChiniMandi
After a sharp sell-off in the previous session, Indian equity markets staged a smart rebound on Wednesday, with the benchmark Sensex rising over 300 points and the Nifty crossing the 23,200 mark. The recovery was driven by buying interest in banking, financials, and IT stocks, even as global cues remained mixed. Analysts say the bounce back was largely on account of value buying after the recent correction, which had made valuations more attractive in select pockets.
The Sensex ended the day at 76,404.50, up 312.45 points or 0.41 per cent, while the Nifty50 settled at 23,215.60, gaining 98.75 points or 0.43 per cent. The broader market also participated in the rally, with the BSE Midcap index rising 0.6 per cent and the Smallcap index gaining 0.8 per cent. Market breadth remained positive, with 1,842 stocks advancing on the BSE against 1,456 declining. The volatility index, India VIX, cooled off by 4.2 per cent to 13.85, indicating easing nervousness among traders.
"The rebound was on expected lines after the sharp sell-off, but the sustainability of this recovery will depend on global cues and the trajectory of foreign institutional flows. Investors should remain cautious and avoid chasing the rally," analysts say.
Among sectoral indices, Bank Nifty rose 0.7 per cent, Nifty Financial Services gained 0.6 per cent, and Nifty IT added 0.5 per cent. On the losing side, Nifty FMCG slipped 0.2 per cent and Nifty Pharma ended flat. In the Sensex pack, HDFC Bank, ICICI Bank, Infosys, and Reliance Industries were the top contributors to the index's gains. HDFC Bank alone added nearly 120 points to the Sensex, while ICICI Bank contributed around 80 points. On the other hand, Nestle India and Sun Pharma were among the few laggards.
The market had witnessed a sharp sell-off in the previous session, with the Sensex plunging over 700 points and the Nifty slipping below 23,100, amid concerns over global growth and persistent foreign fund outflows. Foreign institutional investors (FIIs) sold equities worth ₹2,150 crore on Tuesday, while domestic institutional investors (DIIs) bought shares worth ₹1,890 crore, providing some support. Analysts say the tug-of-war between FIIs and DIIs is likely to continue in the near term, keeping the market range-bound.
| Index | Closing Level | Change (Points) | Change (%) |
|---|---|---|---|
| Sensex | 76,404.50 | +312.45 | +0.41% |
| Nifty50 | 23,215.60 | +98.75 | +0.43% |
| Bank Nifty | 49,850.30 | +350.20 | +0.70% |
| India VIX | 13.85 | -0.60 | -4.20% |
Looking ahead, market participants will keep an eye on global economic data, central bank commentary, and the movement of crude oil prices. The upcoming quarterly earnings season is also expected to provide fresh triggers. Analysts say that while the long-term outlook remains positive, short-term volatility cannot be ruled out. Investors are advised to focus on quality stocks and maintain a staggered approach to investing.
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