Mumbai: After the stock market bloodbath on Monday, the benchmark indices Sensex and Nifty witnessed a relief rally on Tuesday even though market sentiment remains fragile amid prevailing uncertainty over the ongoing trade war. At the closing bell, the battered markets rebounded as the Sensex was up 1,089.18 points or 1.49 percent at 74,227.08, and the Nifty was up 374.25 points or 1.69 percent at 22,535.85.
Major gainers: Jio Financial, Shriram Finance, Titan Company, Cipla, Bharat Electronics were among major gainers on the Nifty, All the sectoral indices ended in the green with Capital Goods, Consumer Durables, FMCG, Oil and Gas, PSU, Realty, Telecom, Media up 2-4 percent. BSE Midcap index rose 1.8 percent and Smallcap index added 2 percent.
All 13 major Indian sectoral indexes traded higher. The recovery was led by IT and banking-finance stocks. Infosys, L&T, HCL Tech and Tech Mahindra were trading at least 3% higher than Monday’s closing.
Titan also jumped 5% after the jeweller and watchmaker said standalone revenue rose 25% in the March quarter.
Updates from markets at close
- 49 of 50 Nifty stocks end in the green, market breadth firmly in favour of advances
- BSE-listed companies regain over 60% of market cap loss seen yesterday
- BSE-listed companies gain market cap of more than ₹7 lakh crore today
- Nifty regains 22,500 and Sensex is back above 74,000
- Sensex rises 1,089 points to 74,227 and Nifty 374 points to 22,536
- Nifty Bank gains 651 points to 50,511 and Midcap Index 1,029 points to 49,838
- Jio Financial is top Nifty gainer, up 5% as company forays into digital loan against securities
- Pharma and IT see buying after a continued selling over past few days, indices up 2% each
- All sectoral indices end with gains while volatility index slides more than 10%
- BEL bagging order of more than ₹2,200 crore lifts the stock, up over 3%
- Oil marketing companies rise following government’s announcement regarding LPG dues’ compensation
- Power Grid is the only Nifty loser, ends with a cut of 0.2% in a strong day of trade
- Delhivery reverses Monday’s gains, slips more than 7% with healthy volumes
Will the rebound sustain?
According to various market experts, India may have better chances of holding up against the ongoing global turmoil as compared to most Asian and emerging market peers. But this optimism is likely to take some time to reveal itself.
It is difficult to predict whether the rebound will sustain as there is mounting uncertainty, not just around Trump’s tariffs, but also on how other economies might react and retaliate. In case of a full-blown multi-front global trade war, India’s immunity against the tariff might be quick to fade away with several market participants taking on a ‘sell-on-rise’ approach.
Thus analysts suggest investors to take on a ‘wait-and-watch’ mode as of now.
