1 hr ago
Sensex, Nifty Rebound on Bank Stocks and Global Cues
Indian share prices rose after falling for three days.
The Sensex and Nifty are two important measures of how Indian stocks are doing.
Bank shares attracted many buyers and helped lift the market.
Positive trends in several overseas markets also encouraged investors.
Lower US bond yields supported the improved mood.
India also received a record amount of money through special foreign-currency deposits.
Foreign and domestic institutions bought shares on Wednesday, even though the market fell that day.
Analysts said these developments could support the rupee and give investors more confidence.
Sensex rose 334.16 points to 76,904.51, while Nifty gained 95.45 points to 24,009.90 in early trade.
The rebound ended a three-session losing streak and was led by bank stocks and other blue-chip shares.
Tata Steel, Adani Ports, Axis Bank, ICICI Bank and State Bank of India were among the major gainers.
India recorded USD 127.23 billion in FCNR(B) deposits under a special Reserve Bank of India programme.
Foreign and domestic institutional investors bought equities on Wednesday despite a market decline led mainly by retail and proprietary sellers.
- Who
- Indian stock-market investors, banks, foreign and domestic institutional investors, and retail investors.
- What
- The Sensex and Nifty rebounded in early trade after three sessions of losses.
- Where
- Indian equity markets.
- When
- Thursday morning, following Wednesday's market activity.
- Why
- Buying in bank stocks, positive global market trends, easing US bond yields and strong FCNR(B) deposit inflows supported sentiment.
Key facts
- Sensex
- Rose 334.16 points, or 0.44%, to 76,904.51 in morning trade.
- Nifty
- Advanced 95.45 points to 24,009.90.
- FCNR(B) deposits
- Reached a record USD 127.226 billion as of August 31, according to the Reserve Bank of India.
- Foreign institutional investors
- Bought equities worth Rs 6,688.37 crore on Wednesday.
- Domestic institutional investors
- Bought shares worth Rs 2,812.98 crore on Wednesday.
- Major gainers
- Included Tata Steel, Adani Ports, Axis Bank, ICICI Bank and State Bank of India.
- Major laggards
- Included Tech Mahindra, HCL Technologies, Infosys, Tata Consultancy Services and Bajaj Finance.
- Analyst-cited figure
- V K Vijayakumar separately referred to USD 136 billion mobilised under a concessional swap facility, while citing about USD 127 billion under FCNR(B).
Quotes
V K Vijayakumar
Chief Investment Strategist at Geojit Investments Ltd.
“The market sentiment is likely to look up on Thursday following the slight easing of the US bond yields. A big positive from the rupee perspective is the huge mobilisation of $136 billion under concessional swap facility. The $127 billion mobilised under the FCNR(B) scheme has come way above the consensus estimates.”
rediff.com
“So, it is obvious that the brunt of the selling came from retail investors, proprietary traders and bears who used the market weakness to hammer the stocks down. This is likely to reverse on Thursday.”
rediff.com
Sources
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