Mumbai (Maharashtra) [India], August 20 (ANI): The Indian equity market rebounded on Thursday, with the Sensex rising over 400 points and the Nifty holding above 24,200, snapping a week-long losing streak. The recovery came on the back of falling US bond yields, short-covering and other factors that boosted investor sentiment.
Both benchmark indices opened with a sharp gap-up. The Sensex opened at 77,468.45, against the previous close of 76,909.68, and hit a high of 77,494.79 in the early morning session. Likewise, the Nifty opened at 24,225.45, against the previous close of 24,078.30. The index hit a high of 24,225.45 during the same period.
At the time of reporting, the Sensex was trading at around 77,392.32, up 482.64 points, or 0.63 per cent, while the Nifty was trading at around 24,191.45, up 113.15 points, or 0.47 per cent.
Sectorally, all indices traded in the green, with Nifty IT emerging as the top performer, surging over one per cent. Likewise, all broad-market indices traded in positive territory.
According to VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, "This rally has fundamental support from revenue and earnings growth. Segments like CDMO, precision engineering and power infrastructure are doing very well, and the management commentaries are very positive. Part of the good news in these segments is already priced in, but there is more room for price appreciation in these segments."
Vijayakumar added, "The market, which has been steadily downtrending for the last 12 trading sessions, appears set for a short-term reversal now. The market is in oversold territory, and a mild rally triggered by short-covering is likely. The decline in US bond yields indicates a positive potential construct for equity markets globally."
He added that a significant trend in the market is that while large-caps are languishing, mid- and small-caps are doing well.
In the commodity market, Brent crude was trading at around USD 91.95 per barrel, while crude oil was trading at around USD 84.53 per barrel. The yellow metal was trading at around USD 4,497.95 at the time of reporting.
On the NSE, Shriram Finance, Infosys, Bajaj Finance, Eternal, Kotak Bank, Wipro, HDFC Bank, Bharti Airtel, Hindustan Unilever, Axis Bank, TCS, Cipla, LT, BEL, Trent, Asian Paints, SBI Life, IndiGo, Tata Steel, among others, traded in the green. Grasim, Bajaj Auto, M&M, Hindalco and ONGC, among others, were the major losers.
On the BSE, Infosys, Bajaj Finance, Eternal, Kotak Bank, Hindustan Unilever and IndiGo, among others, were the major gainers, while Sun Pharma and M&M were the major losers.
As per market analyst Vipin Dixena, the market is attempting to break a seven-session losing streak. At the same time, elevated crude prices and geopolitical uncertainty remain key risks for today's session. However, FIIs have been buying in the Indian market, which remains a positive development, he noted.
Technically, the Nifty is at a crucial level. The 24,000 zone remains the key support, while 24,200-24,250 is the immediate resistance area, he noted, stressing,
"A sustained move above 24,200 would be the first indication that the recent correction may be losing momentum, whereas failure to hold 24,000 could reopen the downside towards 23,850-23,750." (ANI)
Sensex surges over 400 Points, Nifty above 24,200 ending 7-day losing streak on positive global cues
