Markets rebound, up over 1% after 2-day dip

MUMBAI: Benchmark indices rebounded sharply on Tuesday after sliding for the past two sessions, propelled by bargain hunting in energy, auto and consumption stocks amid a largely supportive trend overseas.

The 30-share BSE Sensex jumped 776.72 points or 1.37% to end at 57,356.61. Similarly, the broader NSE Nifty rallied 246.85 points or 1.46% to 17,200.80. PowerGrid was the top gainer among the Sensex constituents, spurting 3.93%, followed by Titan, M&M, IndusInd Bank, Bajaj Finance, Reliance Industries, Larsen & Toubro, SBI, Airtel and HUL.

In value terms, index heavyweight Reliance Industries accounted for the lion’s share of the benchmark’s gains.

Only four counters closed in the red, including Axis Bank, Asian Paints, Maruti and TCS, which dipped up to 0.70%.

“Strong buying interest from domestic investors and positive global trend resulted in a rebound. But volatility persists due to lockdown in China, Russia–Ukraine war and rate hikes. However, dips are encouraging investors to accumulate quality stocks. In a range bound market, it is advised to stick with sectors that are expected to be least impacted by inflation and rising bond yield, banking, IT, pharma and themes like green energy,” said Vinod Nair, head of research, Geojit Financial Services.

All BSE sectoral indices advanced, led by power (3.63%), realty (3.48%), utilities (3.39%), auto (2.80%) and consumer durables (2.22%). In the broader markets, the BSE midcap and smallcap gauges jumped 1.62%.

World stocks ticked higher, boosted by healthy corporate earnings, even as rising Covid-19 cases in China and fears of aggressive rate hikes by central banks capped the gains.

Elsewhere in Asia, markets in Tokyo, Hong Kong and Seoul settled in the green, while Shanghai ended lower.