Sensex jumps 950 points; Nifty above 23,700 as markets rebound
Sensex soars above 900 points as Nifty reclaims 23,700; IT, auto, and energy stocks fuel rebound amid oversold signals and positive global cues.
Indian equity markets rebounded on Tuesday after seven consecutive sessions of losses, with the BSE Sensex surging 835 points or 1.08 per cent to trade at 78,174, and the Nifty50 rising 251 points or 1.07 per cent to 23,705 as of 9:45 AM. Gains in IT, auto, and energy stocks drove the recovery, aided by positive global cues.
Market Overview
The Nifty50 entered correction territory last week, marking its longest losing streak since February 2023. However, Tuesday’s session brought relief as the Relative Strength Index (RSI) indicated oversold conditions, sitting below 30.
Key gainers included Infosys, Reliance Industries, M&M, and Tata Motors, while Bajaj Finserv and ICICI Bank opened weaker.
Crude oil steadies
Crude oil prices stabilized after Monday’s three per cent rally. Brent crude traded at $73.30 per barrel, and WTI hovered near $69, bolstered by a weaker dollar and geopolitical tensions.
Stock highlights
- Ashoka Buildcon: Rose 6 per cent after winning Rs 2,791 crore projects.
- Waaree Energies: Dropped 6.5 per cent post-muted Q2 results.
FII/DII action
Foreign institutional investors (FIIs) net sold equities worth Rs 1,400 crore on November 18, extending their selling streak to 11 sessions. Domestic institutional investors (DIIs), however, purchased Rs 2,330 crore worth of stocks, providing some support.
Prashanth Tapse of Mehta Equities expects Nifty to face resistance at 23,733-23,800. A breach below 23,565 may delay recovery efforts, although a sharp collapse is less likely.
Global cues
Asian markets tracked Wall Street gains, with Japan's Nikkei rising 0.2 percent and Hong Kong's Hang Seng climbing 0.8 percent. Meanwhile, U.S. S&P 500 futures were flat after a 0.4 percent overnight gain.
With FIIs continuing to sell and weak earnings growth expected in FY25, analysts anticipate a range-bound market, barring fresh positive triggers.
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