In a remarkable turnaround, Indian benchmark indices, Sensex and Nifty, rebounded by nearly 1% on Tuesday, fueled by strong performances in the financial, auto, and IT sectors. The 30-share Sensex surged by 566.97 points, or 0.87%, closing at 66,079.36, with 26 of its constituents finishing in the green. The day saw an impressive opening with a 400-point gain, reaching a high of 66,180.17. Meanwhile, the broader Nifty of the National Stock Exchange gained 177.50 points or 0.91%, closing at 19,689.85, driven by notable gains in companies like Coal India, Adani Ports, and Bharti Airtel.
US Bond Yield Moderation Boosts Investor Confidence
Market analysts attributed the resurgence to the moderation in US bond yields, with expectations of stable interest rates in the short term. This development renewed investor interest in rate-sensitive shares, counteracting concerns related to the Israel-Hamas conflict. The previous day had witnessed a sharp drop in stock markets, with indices plunging up to 1% due to escalating tensions in the Middle East.
Factors Contributing to the Rebound
Vinod Nair, Head of Research at Geojit Financial Services, highlighted that the rebound was aided by a decrease in crude oil prices and positive global cues, including dovish remarks from US Federal Reserve officials that kept US bond yields in check. The Indian market’s primary focus is currently on the upcoming earnings season, with optimistic expectations for corporate performance.
Top Gainers and Global Market Performance
Among the Sensex gainers were Bharti Airtel, Kotak Bank, Tata Motors, and JSW Steel, which posted significant gains. On the other hand, IndusInd, TCS, Titan, and Asian Paints declined. Globally, markets showed resilience, with Tokyo’s Nikkei 225 gaining 2.4%, Hang Seng in Hong Kong rising 0.8%, and Europe’s DAX and CAC 40 posting substantial gains. In the US, the dollar index dropped slightly, and Brent Crude prices declined.
FIIs Turn Net Sellers
Foreign Institutional Investors (FIIs) were net sellers on Monday, offloading equities worth Rs 997.76 crore, according to BSE data.
