Sensex, Nifty rebound after days of decline as Asian markets recover
The equity benchmark indices rebounded in early trade on Friday after facing a massive drubbing of late amid a recovery in Asian markets.
The 30-share BSE Sensex jumped 411.17 points to 63,559.32 in early trade. The Nifty climbed 115.9 points to 18,973.15.
Among the Sensex firms, NTPC, Mahindra & Mahindra, State Bank of India, Infosys and Maruti were the major gainers.
Asian Paints emerged as the only laggard from the pack.
In the Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in positive territory.
The US markets ended lower on Thursday.
The European Central Bank left interest rates unchanged on Thursday for the first time in over a year.
“After six continuous days of losses triggered by elevated bond yields in the US and tensions in West Asia, the market appears to be oversold,” V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
He added that the US economy’s resilience is surprising.
“Q3 GDP growth at 4.9 per cent means the Fed will continue to be hawkish and the likely ‘higher for longer’ interest rate regime is negative from the stock market perspective,” Vijayakumar added.
On the positive side, valuations in India, which were high, have now turned fair, and in sectors such as banking valuations are attractive, he said.
Global oil benchmark Brent crude jumped 1.25 per cent to $89.03 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 7,702.53 crore on Thursday, according to exchange data.