Sensex and Nifty rebound nearly 1%, snap three-day losing run

The Benchmark BSE Sensex rebounded nearly 1 per cent, while Nifty50 reclaimed the 17,100 level on Wednesday as value buying in energy, banking, information technology (IT), and fast-moving consumer goods (FMCG) shares helped the Indian indices cut short a three-day losing run.

Positive trends in European markets and the US stock index futures ahead of today’s Federal Reserve’s meeting minutes and inflation data, which is going to be released on Thursday, also boosted investor sentiment.

The 30-share BSE Sensex climbed 478.59 points or 0.84 per cent to settle at 57,625.91. During the day, it jumped 540.32 points or 0.94 per cent to 57,687.64. The broader NSE Nifty50 reclaimed the 17,100 level by jumping 140.05 points or 0.82 per cent to close at 17,123.60.

“Bears took a breather today as markets witnessed a relief rally after getting hammered in the past few sessions. However, the recovery doesn’t seem to be sustainable as multiple negative factors are at play,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

“The domestic market was successful in overcoming the weak cues from global peers as it focused on quarterly earnings. The IT earnings season got off to a strong start, which improved the sector’s spirits,” said Vinod Nair, Head of Research, Geojit Financial Services.

Among Sensex shares, Power Grid rose the most by 3.5 per cent. Axis Bank rose by 2.89 per cent, NTPC by 2.42 per cent, IndusInd Bank 1.97 per cent, L&T by 1.7 per cent, and UltraTech Cement by 1.65 per cent.

Gains in Reliance Industries, HDFC, HDFC Bank, Kotak Bank, HUL, and ITC helped indices bounce back. Among IT shares, TCS gained over 1 per cent, Wipro advanced 0.85 per cent while Infosys also closed higher. On the other hand, Asian Paints, Dr Reddy’s, Bharti Airtel, Titan, and ICICI Bank ended lower.