Sensex and Nifty rebounded on Wednesday, recovering from the significant market decline the previous day, where the benchmark BSE index had fallen over 1000 points.
Despite opening in the red, the Sensex surged by over 750 points, and the Nifty showed an increase of over 200 points during the day. At the close of Wednesday's session, Sensex was up more than 689 points at 71,060, while the NSE Nifty gained 215 points, closing at 21,453.
Tuesday had witnessed a major drop in both the NSE Nifty and BSE Sensex, with the Sensex falling by 1060 points and the Nifty dropping by around 400 points, slipping below 21,500 for the first time in days.
The top gainers on Wednesday included Hindalco Industries, up by 4.41 percent, and Dr Reddy's Labs, up by 4 percent, with Tata Steel shares also experiencing an uptick ahead of its Q3 profit announcement scheduled for Wednesday, rising by 3.88 percent.
A total of 25 stocks of the 30-share benchmark settled in green, while 43 constituents of the NSE Nifty witnessed gains.
"The market rebounded from yesterday's sell-off taking cues from global peers. The sentiment was reinforced by the PBOC's 0.5 per cent cut in reserve ratio to boost growth and financial liquidity. However, overall sentiment is muted as concerns persist on FIIs selling due to premium valuations in India and below expectation Q3 earnings so far," Vinod Nair, Head of Research, Geojit Financial Services, said.
The BSE Midcap rose 1.71 per cent to settle at 37,884.28, while the smallcap index rose 1.72 per cent to 44,124.36. Among sectoral indices, telecommunications and metal rose by 3.57 per cent and 3.21 per cent, respectively. While commodities rose 2.06 per cent, oil & gas went up 2.17 per cent and energy increased by 1.95 per cent. The banking sector index was the only laggard, falling marginally by 0.18 per cent. Elsewhere in Asia, Japan's Nikkei 225 lost 0.80 per cent, and Hong Kong's Hang Seng gained sharply by 3.56 per cent.
China's Shanghai Composite also ended 1.80 per cent higher. European markets were higher on Wednesday, with Germany's DAX and CAC 40 of France gaining 1.00 per cent and 0.58 per cent. London's FTSE 100 rose 0.29 per cent. In the US markets, the Dow closed 0.25 per cent lower on Tuesday, while the S&P 500 settled 0.29 per cent higher and the tech-heavy Nasdaq closed the session 0.43 per cent higher. Meanwhile, Brent crude futures, the global oil benchmark, were trading higher by 0.58 per cent to USD 80.01 per barrel on Wednesday.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 3,115.39 crore, according to exchange data. As per sources, market regulator Sebi does not expect a large number of foreign portfolio investors to be impacted by the new beneficial ownership disclosure norms.
Norms are set to come into effect on February 1, and against this backdrop, the equity market has witnessed significant volatility, with the benchmark Sensex crashing over 1,000 points on Tuesday. In the past four trading days alone, FPIs have sold shares worth over Rs 27,000 crore after pumping huge money that had also pushed the market indices to record highs.
(With PTI inputs)
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