Value buying triggers hefty rebound in markets

Mumbai:n Benchmark BSE Sensex and Nifty soared over 2.5 per cent to log their best single-day gain in more than three months on Tuesday driven by value buying in banking, IT and oil stocks amid mixed global cues.

The 30-share Sensex jumped 1,564.45 points or 2.70 per cent to settle at more than one-week high of 59,537.07. During the day, it zoomed 1,627.16 points or 2.80 per cent to a day's high of 59,599.78. The broader NSE Nifty spurted 446.40 points or 2.58 per cent to close at 17,759.30 as all 50 components advanced.

The key indices logged their best single-day gain since May 20. The indices had tumbled more than 1.4 per cent on Monday after US Federal Bank chair Jerome Powell indicated last week that the central bank will stick to a strategy of rate hikes to cool inflation. Making a sharp recovery, all the 30 Sensex shares ended in the green.

Bajaj Finserv rallied the most by 5.47 per cent, followed by Bajaj Finance which jumped 4.86 per cent. IndusInd Bank jumped 4.38 per cent, Tech Mahindra by 3.96 per cent, ICICI Bank by 3.72 per cent, Kotak Mahindra Bank by 3.46 per cent, Tata Steel by 3.29 per cent and HDFC by 3.28 per cent. Gains in Reliance Industries, HDFC Bank, Infosys, TCS, HUL, SBI, Axis Bank and ITC fuelled the rally.

"Today's rebound indicates the domestic economy's resilience in comparison to its global peers. Although the markets are currently at premium valuations, continued support from foreign investors aided domestic stocks to inch higher," said Vinod Nair, head (research) at Geojit Financial Services.

"Markets made a remarkable recovery and gained over two-and-a-half per cent amid mixed global cues. After the gap-up start, the benchmark moved from strength to strength till the end and settled around the day's high. All the sectoral indices participated in the move wherein banking and financials contributed the maximum. In line with the trend, the market breadth was also inclined strongly on the advancing side," said Ajit Mishra, V-P (research), Religare Broking.

Foreign institutional investors (FIIs) offloaded shares worth Rs561.22 crore on Monday, according to exchange data.

In the broader market, the BSE midcap gauge jumped 1.97 per cent and smallcap index climbed 1.40 per cent. All the BSE sectoral indices ended in the green, with realty rallying 3.51 per cent, bankex advanced 3.33 per cent, finance jumped 3.18 per cent, utilities (2.82 per cent), power (2.82 per cent) and oil & gas (2.65 per cent).