Sensex rebounds 525 points from day's low; Nifty reclaims 18,800; Subros rallies 20%, IIFL Sec tanks 16%

Domestic equity markets took a sharp U-turn in the latest half of the day to erase their early cuts. The fag-end buying in select heavyweight sectors pushed the markets higher after a volatile session, bucking the weak global cues. Inflation worries and slowdown concerns are weighing on the market sentiments.

For the day, BSE Sensex rebounded over 525 points from day's low to settle at 63,327.70, up 159.40 points, or 0.25 per cent from the previous close. NSE's Nifty50 added 61.25 points, or 0.33 per cent, to end the session at 18,816.70. BSE midcap and smallcap indices rose about half-a-per cent, each, while fear gauge, India VIX, dropped about a per cent to 11.13-level.

While most of the Asian markets ended laggards, last-hour buying in IT, metal, banking and power stocks helped Sensex regain the 63,000 level in a trading session marked with sharp intra-day volatility. It will not be a smooth one-way rally, with intermittent hiccups such as interest rate uncertainty, global economic slowdown and inflation woes likely to play spoilsport in the near to medium term, said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.

"Technically, the Nifty took support near 18,650 and bounced back sharply. On intraday charts, the index has formed a double bottom formation which is indicating the continuation of an uptrend formation in the near future. For the day traders, 18,750 would be the trend decider level. Above the same, the index could rally till 18,900-18,925. Below 18,750, the selling pressure is likely to accelerate and the index could retest the level of 18,650-18,620," he said.

On a sectoral front, the Nifty media index dropped more than a per cent. Nifty pharma and healthcare were only other losers during the session. On the contrary, Nifty IT, metal and auto indices added about a per cent each, while Nifty private bank, realty and financial services indices also posted decent gains.

In the NIfty50 pack, Tata Motors, HCL Technologies and Power Grid gained about 3 per cent each, followed by HDFC Life Insurance Company, Eicher Motors and Bajaj Auto, which gained 2 per cent each. Tech Mahindra, NTPC and SBI Life Insurance were the other key gainers.

Among the losers, Bajaj Finance tanked 2 per cent, followed by Bajaj Finserv, which shed more than a per cent. Sun Pharma, Mahindra & Mahindra and Bharat Petroleum Corporation were among the other key losers on the blue-chip index.

The Indian market opened cautiously due to weak global cues, with heightened concerns over the Chinese economy following their decision to cut interest rates after a 10-month pause, said Vinod Nair, Head of Research at Geojit Financial Services.

"Global worries were amplified by concerns of a possible rate hike by the US Fed in its July meeting, with investors eagerly awaiting Powell’s testimony. However, the indices managed to recover smartly, led by upside in IT and Auto stocks," he added.

A total of 3,631 shares were traded on BSE on Tuesday, of which 1,929 settled with gains. 1,578 stocks ended the session lower while 124 shares remained unchanged. A total of 168 shares hit their upper circuit, whereas 121 shares tested the lower circuit levels for the day.

In the broader markets, shares of Subros hit an upper circuit of 20 per cent amid the buzz that the government may roll-out mandatory air-conditioned driver compartments for trucks starting 2025. Dishman Carbogen Amcis surged 14 per cent, while KPI Green Energy rose 13 per cent. HDFC Asset Management Company settled 11 per cent higher.

On the downside, IIFL Securities slumped 16 per cent after Sebi barred the broking firm from onboarding new clients for next three years, while Timken tanked 8 per cent after a reported bulk deal by its parent. Zee Entertainment settled 6 per cent down, while Archean Chemical Industries and IIFL Finance ended 5 per cent lower, each.

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