Markets rebound: Sensex zooms 300 points, Nifty reclaims 7,900

Financials were among the top gainers on short covering and value buying

Benchmark share indices rebounded after the sharp plunge in the previous session when both the indices witnessed their biggest single-day drop since January 2009.

Gains were led by value buying and shortcovering in financials.

At 9:15AM, the 30-share Sensex was up 351  points at 26,092 and the 50-share Nifty was up 100 points at 7,909.

ICICI Bank, SBI, Axis Bank were among the top gainers along with metal shares in opening trades.
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(Updated at 8:35AM)
Benchmark share indices are likely to rebound on Tuesday on short covering and value buying at lower levels after the carnage seen in the previous session when both the indices witnessed their biggest single-day drop since January 2009. However, concerns over foreign capital outflows amid a weakening rupee could weigh on the markets in the latter half of the trading session.

At 8:35AM, the early indicator SGX Nifty was up 118 points or 1.5% at 7,914.

Foreign institutional investors were net sellers in equities to the tune of Rs 5,275 crore on Monday, as per provisional stock exchange data.

Metals stocks could be under pressure on concerns that demand could be lower in the wake of sluggish economic growth in China, the world's largest consumer.

Financials stocks are likely to rebound on value buying at lower levels while export-led sectors such as IT and pharma sectors may be some of the gainers in today's trade.

Vedanta may gain after the company raised Rs 2,000 crore from State Bank of India through issue of non-convertible debentures.

Future Retail may firm up on raising Rs 205 crore through issue of non-convertible debentures on a private placemnent basis.

Jet Airways may firm up after the airline lowered its base fares for both business and economy classes for travel on select international routes.

Hindustan Petroleum may gain after the state-owned oil marketing company registered its highest-ever net profit of Rs 2,733 crore on the back of sharp decline in crude oil prices.


GLOBAL MARKETS


Most Asian markets except China rebounded after the sharp drop in the previous session on concerns that the sluggish economic growth in China would spread to other global economies. Shanghai Composite was down 3.6% while Japan's Nikkei rebounded after opening nearly 4% lower. The benchmark Nikkei was up 1.1% while Hang Seng gained 2.6% and Straits Times was up 2.4%.

Major US share indices witnessed a sell-off on Monday after the bloodbath seen in Asian markets because of concerns over China's economic growth slowdown. The Dow Jones plunged over 1,000 points intra-day only to recover in late trades led by
recovery in Apple shares. The Dow Jones ended down 588 points or 3.6% at 15,871.35, the broader S&P 500 ended down 78 points or 3.9% at 1,893.21 and the tech-laden Nasdaq dropped 180 or 3.8% to 4,526.25.

European share also witnessed mayhem to end nearly 5% lower on Monday after the sharp sell-off in Asia led China while the 1,000-point plunge on Wall Street in intra-day trade dampened investor sentiment. Among the major indices, FTSE-100 ended down 4.9%, CAC-40 dropped 5.7% and DAX ended down 4.9%.