1 week ago
Sensex, Nifty Rebound After Seven-Session Market Rout
Indian share markets rose on Thursday after falling for seven days in a row.
The Sensex and Nifty both finished higher.
Investors felt less worried after the United States Treasury announced plans to buy more long-term debt.
This helped calm global bond markets and lowered pressure from high borrowing costs.
A stronger rupee and a weaker dollar also made Indian shares more attractive.
Technology and financial companies helped lead the gains.
Sugar companies rose sharply after the government limited how much sugar some large buyers could store.
However, expensive oil and geopolitical tensions continued to worry investors.
The Sensex rose 628.04 points, or 0.82%, to close at 77,537.72, while the Nifty gained 0.64% to 24,231.85.
The rebound ended seven consecutive sessions of losses, during which both benchmark indices fell about 2%.
Markets worldwide rallied after the US Treasury announced expanded buybacks of long-duration debt, easing global bond-yield concerns.
A firmer rupee, weaker dollar, short covering and renewed domestic buying supported the recovery, led by IT, financial, realty and FMCG stocks.
Sugar shares gained as much as 18% after tighter stockholding limits for bulk consumers were announced, while elevated crude prices and geopolitical tensions remained risks.
- Who
- Indian investors, foreign portfolio investors, domestic institutions and companies listed on the Sensex and Nifty were involved.
- What
- India’s benchmark equity indices rebounded, ending a seven-session losing streak.
- Where
- Indian stock exchanges, amid a rally across other Asian and global markets.
- When
- On Thursday; the articles do not specify the calendar date.
- Why
- Global bond-market pressures eased after the US Treasury announced expanded long-duration debt buybacks; a firmer rupee, short covering and renewed risk appetite also supported the rally.
Reasons for the Rebound
Reasons for Caution
Global bond markets
Reasons for the Rebound
The US Treasury’s expanded buyback plans eased concerns about rising global yields and helped revive demand for emerging-market assets.
Reasons for Caution
The market remained exposed to renewed yield pressure if global financial conditions worsened.
Investment sentiment
Reasons for the Rebound
A weaker dollar, firmer rupee, short covering and renewed domestic buying encouraged investors to return after the sell-off.
Reasons for Caution
The rebound followed a prolonged decline, and optimism was described as guarded rather than fully restored.
Oil and geopolitical risks
Reasons for the Rebound
Cooling yields supported IT and financial stocks and helped produce a broad-based recovery.
Reasons for Caution
Brent crude stayed near $94 per barrel, while tensions involving the Strait of Hormuz and unresolved US-Iran tensions kept inflation and profitability concerns alive.
Foreign investor flows
Reasons for the Rebound
One article says foreign investors returned as buyers, purchasing Rs 407.99 crore.
Reasons for Caution
Exchange data cited in the other article says foreign portfolio investors sold shares worth Rs 583.36 crore; the reports therefore conflict on this point.
Key facts
- Sensex close
- 77,537.72, up 628.04 points or 0.82%
- Nifty close
- 24,231.85, up 153.55 points or 0.64%
- Previous losing streak
- Seven sessions, with both indices declining about 2%
- Investor wealth
- Rose by Rs 2.71 lakh crore
- Market breadth
- 2,450 BSE stocks gained and 1,874 declined
- Sector leaders
- IT, financial, realty and FMCG stocks led the recovery
- Crude oil
- Brent remained near $94 per barrel
- Sugar stocks
- Rose by as much as 18% after tighter stockholding limits
Quotes
Ajit Mishra
SVP – Research, Religare Broking
“Markets found much-needed relief after the US Treasury stepped in to contain the surge in global bond yields, triggering a strong broad-based rebound and ending the domestic market’s week-long losing streak.”
financialexpress.com
thehansindia.com
“A stronger rupee and short covering following the recent correction further supported the recovery.”
financialexpress.com
Sources
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