Markets rebound amid positive global cues

Mumbai: Benchmark indices Sensex and Nifty rebounded on Tuesday to close over two per cent higher on buying in banking, metal and IT shares amid positive trends in global equity markets.The 30-share BSE Sensex spurted 1,276.66 points or 2.25 per cent to settle at 58,065.47 with 27 of its shares ending in green. During the day, it zoomed 1,311.13 points or 2.30 per cent to 58,099.94. The broader NSE Nifty rallied 386.95 points or 2.29 per cent to end at 17,274.30 as 48 of its constituents advanced.

Buying across sectors, led by metal, banking and IT, helped the indices rebound from previous session's losses.

"Mirroring a robust overnight surge in Wall Street and upbeat domestic business data released by banks, the domestic market ended the day on a cheerful note. An unexpected slowdown in the US Manufacturing PMI gave hope that the US Fed would slow the pace of policy tightening. US bond yields fell in tandem with the US dollar," said Vinod Nair, head (research) at Geojit Financial Services. S Ranganathan, head (research) at LKP securities, stated that "indices surged over two per cent buoyed by positive global cues and encouraging quarterly updates on advances and collections from banks during the second quarter. Ahead of the festive season, the street is optimistic on retail demand across segments and we saw financials lead from the front today. Participation of the IT sector lent ammunition to the Bulls as almost all sectoral indices ended in the Green as we near the end of the Navratri festival.Positive tailwinds at home amidst gloom elsewhere in the globe left Bears stranded as the Sensex vaulted past 58K."

Ajit Mishra, V-P (research), Religare Broking Ltd, adds that "markets are currently dancing to the global tunes and the rebound in the US markets has triggered this rebound. Going ahead, Nifty should hold the 17,200 mark to maintain the positive bias and inch towards the 17,400+ zone."

Foreign institutional investors (FIIs) turned buyers after remaining net sellers in the recent past and bought shares worth Rs 590.58 crore on Monday, according to data available with BSE.

In the broader market, the BSE midcap gauge jumped 2.42 per cent and smallcap index climbed 1.49 per cent. All the BSE sectoral indices ended in the green, with metal rallying 3.43 per cent, services (3.08 per cent), financial services (2.82 per cent), bankex (2.74 per cent) and IT (2.68 per cent).