Markets rebound after two days of fall; Nifty closes at 19,783

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Benchmarks closed in green on Tuesday after two days of fall. BSE Sensex and NSE Nifty advanced over 0.4 per cent each, led by gains in metal and financial stocks, and positive cues from the US market.

According to analysts, market witnessed positive momentum on the hope that the US Federal Reserve will not change the policy rates at its meeting in December amid decline in inflation and cooling job market.

While the Sensex gained 275.62 points or 0.42 per cent to 65,930.77, Nifty advanced 89.40 points or 0.45 per cent to 19,783.40.

Within the Sensex pack, JSW Steel was the major gainer (1.76 per cent) followed by Titan (1.39 per cent), Tata Steel (1.37 per cent), Sun Pharma (1.36 per cent) and Reliance Industries (1.34 per cent).

Financial stocks, which were on the downtrend since RBI’s risk-weight diktat, recovered on Tuesday. Among them, HDFC Bank advanced 0.83 per cent followed by Bajaj Finserv (0.74 per cent), ICICI Bank (0.53 per cent) and Bajaj Finance (0.52 per cent). IT majors such as Infosys (0.22 per cent), HCL Tech (0.2 per cent) and Wipro (0.11 per cent) gained on positive sentiment in the US markets.

On the other hand, Tech Mahindra lost 0.5 per cent followed by L&T (0.47 per cent), NTPC (0.44 per cent), SBI (0.41 per cent) and Maruti (0.34 per cent).

The broader market such as BSE MidCap gained 0.14 per cent, SmallCap (0.20 per cent) and BSE 500 (0.27 per cent) too gained.

Of the 3,853 stocks traded on BSE, 1,955 stocks advanced, 1,769 declined and 129 remained unchanged. While 367 stocks hit 52-week high, 28 stocks touched 52-week low.

Vinod Nair, Head of Research at Geojit Financial Services, said the drop in bond yields and the dollar index suggests mounting speculation about the the potential peak in the interest rate cycle. This will attract funds to emerging markets, he added 

Sectoral Indices

Most sectoral indices ended in green, led by BSE Consumer Durables and BSE Realty gained 1.34 per cent, 1.15 per cent, respectively. However, the BSE Energy was the major laggard with a decline of 0.85 per cent

FII Outflows

The foreign institutional investors (FIIs) remained as net sellers for the second day in a row. They offloaded equities worth ₹455.59 crore, per exchange’s provisional data.