Sensex rebounds, gains over 335 points: Key factors driving the uptick

Indian equity markets opened on a strong note on Tuesday, with the BSE Sensex jumping 335.45 points, or 0.43 per cent, to 78,300.44 at 9:20 AM IST. The broader NSE Nifty rose 135.55 points, or 0.57 per cent, to 23,751.60. This follows Monday's sharp correction amid concerns over the Human Metapneumovirus (HMPV) outbreak and weak performance in banking and real estate stocks.

Top gainers and losers

Among Sensex stocks, Titan Company led the pack, surging 1.90 per cent to Rs 3,535.80. Other major gainers included Nestle India (up 1.04 per cent) and Power Grid Corporation (up 1.01 per cent). On the other hand, Tata Motors (down 0.24 per cent), Mahindra & Mahindra (down 0.67 per cent), and Zomato (down 3.93 per cent) saw declines.

Sectoral performance

Sectoral indices showed a mixed trend. The Nifty IT Index gained the most, rising 0.98 per cent to 44,155.40, followed by Nifty Consumer Durables, up 0.69 per cent. The Nifty Auto Index saw a marginal rise of 0.08 per cent. However, market experts suggest caution due to the volatility induced by broader economic concerns.

Key factors driving today’s market movement

Recovery after Monday's crash: Monday saw a steep decline, with the Sensex falling over 1,200 points due to HMPV fears and disappointing quarterly updates. Bargain hunting in oversold stocks contributed to Tuesday’s rebound.

Positive global cues: Asian markets gained momentum, buoyed by a tech-led rally on Wall Street. Major indices in Japan, South Korea, and Australia reported strong gains, further boosting sentiment.

Technical support levels: Analysts indicated that Nifty is finding support near 23,460, with resistance around 23,800. This technical setup has sparked optimism among short-term traders.

Sector-specific triggers: IT and consumer durable stocks saw buying interest, driven by pre-earnings expectations and easing inflationary concerns.

Outlook remains cautious

Despite the rebound, market participants remain cautious as concerns over the HMPV outbreak and its potential economic impact persist. “We expect volatility to continue until more clarity emerges on the new virus. Stock-specific action will dominate as we head into the Q3 earnings season,” said Siddhartha Khemka, Head of Research, Motilal Oswal.