Sensex, Nifty bounce back sharply in early trade amid rally in Asian peers

Equity market benchmark indices Sensex and Nifty bounced back sharply in early trade on Tuesday after experiencing a significant drop in the previous trade, following a strong rebound in Asian markets. The 30-share BSE Sensex surged 1,092.68 points to 79,852.08 in early trade, while the NSE Nifty jumped 327 points to 24,382.60. All 30 Sensex firms traded in the positive territory during early trade. Tata Motors, Tech Mahindra, HCL Technologies, JSW Steel, HCL Technologies, and Infosys were the leading gainers. Asian markets also rebounded strongly, with Seoul, Tokyo, Shanghai, and Hong Kong showing significant increases.

Japan’s benchmark stock index soared over 10 per cent. The US markets ended with substantial losses on Monday. Foreign Institutional Investors (FIIs) sold equities worth Rs 10,073.75 crore on Monday, according to exchange data. Global oil benchmark Brent crude rose 1.27 per cent to USD 77.27 a barrel. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, “When market valuations are high, unexpected news and events can trigger a market crash. This was evident yesterday in most global asset classes. Fears of recession in the US, unwinding of the Yen carry trade, and tensions in the Middle East contributed to the crash.”

It’s important to note that the correction in India was relatively lower compared to most markets. Domestic investors supported the market with DII purchases of Rs 9,155 crore when FIIs sold shares worth Rs 10,073 crore in the cash market, he added. On Monday, the BSE benchmark fell 2,222.55 points or 2.74 per cent to settle at over a month’s low of 78,759.40, marking its worst single-day decline since June 4, 2024.

During the day, it dropped 2,686.09 points or 3.31 per cent to 78,295.86. The NSE Nifty declined 662.10 points or 2.68 per cent to settle at 24,055.60, and during the day, it plunged 824 points or 3.33 per cent to 23,893.70. Nifty also experienced its worst single-day fall since June 4, 2024, when markets crashed by more than 5 per cent after the general election results.