Indian stock markets rebound after 4-day slump, Sensex jumps 530 pts
Indian stock markets opened on a strong note on Monday, rebounding sharply after a four-day losing streak. The BSE Sensex surged over 530 points in early trade, while the NSE Nifty also climbed higher, driven by buying in banking, IT, and metal stocks. The recovery comes after a prolonged sell-off that had eroded investor wealth, but market participants remain cautious about global cues and domestic inflation concerns.
The Sensex jumped 530.49 points to trade at 73,142.12 in early deals, while the Nifty gained 168.45 points to quote at 22,185.40. The broader market also showed resilience, with the BSE Midcap and Smallcap indices rising up to 0.8%. Among sectoral indices, the BSE Bankex led the rally with a 1.2% gain, followed by IT and Metal indices which rose nearly 1% each. Analysts attribute the rebound to value buying after recent declines, as well as positive global cues from US markets on Friday.
“After a sharp fall, some bargain hunting is expected, but the overall trend remains uncertain. Investors should focus on stock-specific moves and avoid aggressive bets,” said an analyst.
The recent slump was triggered by persistent foreign fund outflows, elevated crude oil prices, and worries over tighter monetary policy globally. Over the past four sessions, the Sensex had lost nearly 1,800 points, and the Nifty had fallen below the crucial 22,000 mark intraday. The rebound on Monday, however, brought some relief to traders, though experts warn that sustained recovery depends on factors like the upcoming US Federal Reserve policy meeting and domestic quarterly earnings.
| Index | Current Value | Change (pts) | Change (%) |
|---|---|---|---|
| Sensex | 73,142.12 | +530.49 | +0.73% |
| Nifty | 22,185.40 | +168.45 | +0.77% |
| Bank Nifty | 48,320.10 | +512.30 | +1.07% |
Market breadth was positive, with about 1,850 stocks advancing against 1,400 declining on the BSE. Top gainers in the Sensex pack included HDFC Bank, Infosys, and Reliance Industries, while laggards were limited. The rupee also strengthened slightly against the US dollar, trading at 83.40, tracking gains in domestic equities.
Investors are now eyeing the release of inflation data and corporate earnings for further direction. Despite the rebound, many analysts suggest that volatility may persist due to global uncertainties. They advise investors to remain cautious and adopt a selective approach, focusing on quality stocks with strong fundamentals.
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