Benchmark indices staged a stellar recovery rally today a day after the market came under strong selling pressure due to ultra-hawkish stance of the US Federal Reserve. Sensex closed 1,564 points or 2.70 per cent higher at 59,537 and Nifty surged 446 points or 2.58 per cent to close at 17,759. Bajaj twins were the top Sensex gainers today, rising up to 5.47 per cent, followed by IndusInd Bank, Tech Mahindra, ICICI Bank and Kotak Mahindra Bank.
All 30 Sensex stocks ended in the green.
Vinod Nair, Head of Research at Geojit Financial Services said, "Today's rebound indicates the domestic economy's resilience in comparison to its global peers. Although the markets are currently at premium valuations, continued support from foreign investors aided domestic stocks to inch higher. Sectors in swing with the progress of the domestic economy should be able to do well compared to the rest." BSE mid-cap and small-cap indices gained 491 points and 395 points, respectively.
On the sectoral front, banking shares were the top gainers with the BSE bankex rising 1,458 points to 45,295.
Consumer durables and auto shares also gained, with their BSE indices rising 1,016 points and 762 points, respectively. All 19 BSE sectoral indices ended in the green.
The market breadth was positive with 2,403 shares ending higher against 1,022 stocks in the red. 127 shares were unchanged. Market cap of BSE-listed firms rose to Rs 280.21 lakh crore.
Santosh Meena, Head of Research, Swastika Investmart said, "Our markets are showing resilience despite volatile global cues, and a surge in crude oil prices but such kind of rally bewildered everyone. This powerful rally can be attributed to delivery-based buying by the FIIs and short covering in the F&O market. Rupee also witnessed a sharp appreciation against the USD despite higher crude oil prices which is a clear indication of FIIs' interest in the Indian equity market. The leadership was in the hands of financial names, whereas the Nifty realty index was the best performing index. The market is heading towards the festive season on an exhilarating note and there is a high probability that the Nifty and Sensex may hit new highs ahead of Diwali. The downside is protected near 200-DMA of 17,000 level."
Benchmark indices ended lower on Monday amid weak global cues. Sensex tanked 861 points to 57,972 and Nifty closed 246 points lower at 17,312. Of the 30 Sensex stocks, 22 ended in the red. IT, banking, metal and consumer durables shares were the top sectoral losers with their BSE indices falling 975 points, 837 points, 322 points and 282 points, respectively.
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