Markets rebound; Sensex surges 700 points
Equity benchmark indices Sensex and Nifty rebounded sharply in early trade on Monday, October 5, supported by a decline in crude oil prices and easing concerns over further US Federal Reserve tightening at its October meeting.
The 30-share BSE Sensex jumped 705.70 points, or 0.98 per cent, to 72,594.57, while the NSE Nifty climbed 187.30 points, or 0.84 per cent, to 22,605.10.
Earlier in the session, the Sensex had risen 413 points to 72,315, while the Nifty gained 131.55 points to 22,554.20.
Among the Sensex constituents, Bajaj Finance, ITC, Bajaj Finserv, Larsen & Toubro, Axis Bank and State Bank of India were among the major gainers. Bharat Electronics, Sun Pharma, Infosys and Asian Paints were among the laggards.
The market rebound comes after eight consecutive weeks of declines. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, said the market appeared set for a near-term rebound, citing better-than-expected results from Accenture and the appointment of Anup Bagchi as MD and CEO of HDFC Bank as factors that could support a turnaround.
Bagchi is set to take over as MD and CEO of HDFC Bank from October 27 for a three-year term, according to the bank's exchange disclosure. The Reserve Bank of India had cleared his appointment on Thursday, October 1. He will succeed Sashidhar Jagdishan.
Bagchi has been associated with ICICI Bank and its subsidiaries since 1992.
Brent crude, the global oil benchmark, declined 0.70 per cent to USD 101.50 a barrel.
"Softer-than-expected US employment data has eased some immediate concerns over further Federal Reserve tightening at its October meeting," Ponmudi R, CEO of Enrich Money, said. He added that elevated Treasury yields, continued foreign selling and renewed geopolitical risks could limit the market's upside and keep investors cautious.
Asian markets were mixed, with Japan's Nikkei 225 gaining more than 2 per cent, while the Hang Seng was marginally lower. US markets ended higher on Friday, October 2.
Foreign Institutional Investors (FIIs) sold equities worth Rs 9,484.22 crore on Thursday, October 1, according to exchange data.
On Thursday, October 1, the Sensex had declined 570.59 points, or 0.79 per cent, to close at 71,909.70, while the Nifty fell 198.50 points, or 0.88 per cent, to settle at 22,421.95.
Domestic equity markets were closed on Friday, October 2, on account of Gandhi Jayanti.
With inputs from PTI
