Markets rebound for the second day on the trot as investors 'buy the dip'

Stocks fell sharply on both, Friday and Monday after a Fed official said he sees rate hikes as early as next year. However, they recouped losses on both days.

Traders bought the dip for a second day in a row, helping markets shrug off the negative sentiment triggered by the US Federal Reserve’s hawkish stance.

Stocks had come under selling pressure after the comments of a Fed official that he expects rate hikes as early as next year. Mirroring losses in the global markets, domestic equities too fell sharply both on Friday as well as Monday. However, they recouped the losses on both days.

Experts said strong buying is emerging from retail investors and domestic institutions whenever the market is seeing a selloff.

“Honestly, I am also surprised. I