Sensex Jumps 938 pts, Nifty Settles Above 23,400 on Bargain Buying After 3-Day Fall

Stock market benchmark indices Sensex and Nifty rebounded by over 1% on Monday after facing a massive drubbing in the past three trading days, driven by value-buying in blue-chip banking counters.

The 30-share BSE Sensex jumped 938.93 points or 1.26% to settle at 75,502.85. During the day, it hit a high of 75,805.27 and a low of 73,949.76.

The 50-share NSE Nifty climbed 257.70 points or 1.11% to end at 23,408.80.

From the 30 Sensex firms, UltraTech Cement surged 4.22%. Trent, HDFC Bank, Mahindra & Mahindra, Eternal, Bajaj Finance, ITC, Tata Steel and State Bank of India were among the biggest gainers.

Bharat Electronics, Sun Pharma, Power Grid and Bharti Airtel were among the major laggards.

"The equity market staged a late-session rebound, supported by value buying in domestically oriented sectors such as auto, banking, and FMCG, a relief rally following the recent sell-off.

"In the near term, investor sentiment will hinge on developments in the Strait of Hormuz, where any easing of supply chain disruptions could provide further support," Vinod Nair, Head of Research, Geojit Investments Limited, said.

The BSE MidCap Select index dipped 0.36% and Smallcap Select index edged lower by 0.25%.

Among sectoral indices, BSE Top 10 Banks surged 1.61%, followed by Private Banks index (1.38%), Financial Services (1.32%), Auto (1.23%), Bankex (1.08%) and FMCG (0.94%).

BSE oil & gas index dropped 2.29%, hospitals (1.64%), realty (1.51%), energy (1.36%) and healthcare (1.13%).

"Markets started the week on a volatile note and gained over a %, snapping their recent losing streak, supported by bargain buying. The rebound largely reflects participants taking advantage of lower levels to accumulate select large-cap stocks after the sharp decline.

"However, the overall mood remained cautious amid persistent geopolitical tensions in the Middle East and elevated crude oil prices, which continue to raise concerns over inflation and India’s import bill. In addition, continued foreign institutional investor outflows and currency volatility are keeping risk appetite in check," Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

In Asian markets, Japan's Nikkei 225 index and Shanghai's SSE Composite index ended lower, while South Korea's benchmark Kospi and Hong Kong's Hang Seng index settled higher. Markets in Europe were trading mostly lower.

The US market ended lower on Friday.

Brent crude, the global oil benchmark, jumped 1.41% to $104.4 per barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹10,716.64 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth ₹9,977.42 crore.

On Friday, the Sensex settled at 74,563.92, down 1,470.50 points or 1.93 %.