Benchmark equity indices rebounded by about 0.7% on Monday, snapping a four-day losing streak as value buying emerged at lower levels following the recent correction.
Despite opening lower, the Sensex recovered to gain 482.92 points, or 0.66%, to close at 73,606.75, offering relief to investors. The Nifty rose 153.20 points, or 0.68%, to settle at 22,753.20. Over the previous four sessions, the Sensex and Nifty had declined 2.15% and 2.36%, respectively.
“Markets staged a recovery on Monday after a weak start, with benchmark indices rebounding from their intraday lows as buying emerged at lower levels. However, the recovery remains tentative, with elevated crude oil prices, geopolitical uncertainty and concerns over the global interest-rate outlook continuing to weigh on sentiment,” said Ajit Mishra, SVP – Research, Religare Broking.
“Indian equities recovered from early losses, supported by value buying and strength in metals, power and healthcare. However, elevated crude prices, geopolitical uncertainty and caution ahead of the Fed, ECB and BoJ policy decisions kept sentiment measured,” said Vinod Nair, Head of Research, Geojit Investments.
Mid- and small-cap stocks also recovered after last week’s sharp correction, although investors remained selective, favouring companies with earnings visibility and attractive valuations. Early quarterly results suggest a commodity-led earnings boost for power generation, metals and refining companies. However, high energy costs and interest rates are expected to moderate overall corporate earnings growth in the coming quarters, Nair added.
Market breadth was positive, with 2,419 stocks advancing against 2,001 declining on the BSE. The broader Nifty Midcap 100 and Nifty Smallcap 100 indices advanced 1.19% and 1.38%, respectively.
Investors’ aggregate market wealth increased by Rs 4.2 lakh crore to Rs 456.02 lakh crore.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,462.49 crore, while domestic institutional investors (DIIs) bought shares worth Rs 2,609.57 crore, according to provisional data released by the exchanges.
Barring consumer durables, all sectoral indices ended in positive territory. The metal index led the gains, rising 2.21%, followed by healthcare, pharmaceuticals, oil and gas, and IT.
Adani Ports, Eternal, Kotak Mahindra Bank, Trent and Tata Steel emerged as the top Sensex gainers, while Bajaj Finance, HDFC Bank, Maruti Suzuki, HCL Technologies and Power Grid were the top laggards.