Markets scripted a dramatic 547-point rebound from lows to close in the positive zone.
Equity benchmark indices halted their three-day gain on Tuesday, with the Sensex falling over 317 points in early trade, amid weak global market trends and persistent foreign fund outflows. Firm crude oil prices in the international market also put pressure on equities. The 30-share BSE Sensex was trading 317.41 points lower at 52,843.87. The NSE Nifty dipped 99.65 points to 15,732.40.
Mid-cap information technology (IT) stocks dominate the list of companies that are trading significantly above their 200-DMA
The dollar's weakness against some currencies overseas supported the rupee.
The market breadth was fairly negative - out of 2,676 stocks traded, 1,668 declined, 930 advanced and 78 were unchanged on Monday. The NSE Nifty was down 38 points at 4,393.
Tata Motors (down 1.7%) was the top loser on Sensex and Nifty, while Lupin (1.6%) gained the most.
Financial, capital goods, IT, power and oil and gas sector stocks hogged the limelight, helped indices to reclaim their key level.
The BSE Midcap ended up 0.5% while the Smallcap index ended nearly 1% higher
The broader NSE Nifty too reclaimed the key 11,500-mark. It touched a high of 11,562.25, before finally settling at 11,536.90, showing a gain of 59.95 points, or 0.52 per cent.
The automobile sector has started seeing volume growth, the crucial economy segment included. Maruti Suzuki India (MSIL) could be a big beneficiary as the country's largest passenger vehicle (PV) maker has seen several favourable developments including volume recovery. Demand for its new sports utility vehicles (SUVs) appears to be good, and the company has 4 lakh outstanding orders by April 2023, (up from 3.6 lakhs in January 2023). Siam (Society of Indian Automobile Manufacturers) estimates that passenger vehicle demand would grow by 5-7 per cent in the 2023-24 financial year (FY24) and MSIL is likely to beat the market growth.
Reliance Industries, Infosys and Tata Motors were the top contributors
According to HSBC, the 'storm has abated' for the Indian markets as the US Fed has deferred tapering of its quantitative easing stimulus, and as the new Reserve Bank of India Governor Raghuram Rajan has taken steps to contain the rupee fall.
Realty, pharma and FMCG shares buck trend.
Covering-up of short positions by speculators ahead of September month expiry in the derivatives segment on Thursday also helped the market stage a smart rally.
Top gainers in the Sensex pack included Yes Bank, TechM, Bajaj Finance, Bharti Airtel, Maruti, Asian Paints and Hero MotoCorp - rising up to 5.30 per cent. The 50-share Nifty ended 85.65 points, or 0.79 per cent, higher at 10,948.25 points.
Oil prices have already fallen over 70 per cent since the downturn began in mid-2014.
Bulls might be on the rampage on Dalal Street but lofty valuations of the Indian equities present a reason for concern and the markets could perhaps witness up to 10 per cent correction, according to analysts. Benchmark indices have been on a record-breaking rally lately and August witnessed the stock market reaching many new highs. The BSE benchmark soared over 9 per cent last month.
A smart rebound in the stock market and sustained capital inflows restricted the rupee loss
The Nifty PSU Bank pared losses to end flat after falling as much as 1.05%
The market breadth turned negative towards close. Out of 2,848 stocks traded on the BSE, there were 1,289 advancing stocks as against 1,484 declines.
India's economic growth, which dipped to 9-year low of 6.5 per cent in 2011-12, is expected to rebound from October, Chief Economic Advisor Kaushik Basu said.
BHEL down around 2.4% and Bharti Airtel down around 1.6% were other major losers.
TCS, Infosys and Wipro were down 0.4-2% each. Capital goods majors also ended lower with L&T and BHEL down 1.4-3.9% each.
The year-to-date returns are 13.33 per cent for Indian funds, compared to 11.66 per cent for emerging market funds overall.
Metal stocks lose ground with Hindalco, Tata Steel, Sesa Sterlite down 4-10%.
Top gainers in the Sensex pack included ICICI Bank, Infosys, Bajaj Finance and HDFC Bank, rising up to 2.67 per cent.
Falling oil prices, gains in index heavyweights like Reliance, HDFC and ONGC and a rebound in technology stocks saw India's stock market barometer Sensex jump 83.84 points or 1.1 per cent to close at 7,271.54.
The Sensex opened with a small negative gap of four points at 6,889, and soon slumped to an intra-day low of 6,850 on sharp correction in most of the sectors.
The Sensex opened with a small positive gap of seven points at 6,886, but soon eased on selective selling pressure to touch an early low of 6,873.
US crude was down 25 cents at $52.08.
SBI was the top loser in the Sensex pack, shedding around 3 per cent, followed by Kotak Bank, IndusInd Bank, NTPC, ICICI Bank, Axis Bank and HDFC Bank. On the other hand, HUL, ITC, L&T, Bajaj Finserv and Tech Mahindra ended with gains.
'As China's reopening euphoria fizzled out on the back of some disappointing economic data, we saw inflows coming back to India with full force in the past 3-4 months.'
The 50-share NSE Nifty gained 53.30 points or 0.61 per cent to 8,778.
ONGC was the top gainer in the Sensex pack, jumping over 5 per cent, followed by Bajaj Auto, ITC, Sun Pharma, Nestle India, L&T, Maruti, UltraTech Cement and HUL. On the other hand, Infosys, Axis Bank, Bharti Airtel, TCS and Titan were among the laggards.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries:
Bajaj Finance was the top gainer in the Sensex pack, rising around 3 per cent, followed by Bharti Airtel, Sun Pharma, Reliance Industries and SBI. NSE Nifty advanced 184.60 points to 16,955.45.
The dollar index, which tracks the world's reserve currency against a basket of its peers, is down 0.16 per cent at 97.58.
Indian shares may not be able to build solid gains on last week's relief rally as concerns surrounding slowing growth in Asia's third-largest economy and lingering worries over euro zone debt crisis will continue to temper investors' enthusiasm.
ICICI Bank, HDFC Bank, IndusInd Bank down between 0.2%-1.4% each.
The rupee on Wednesday dropped by 73 paise to 61.20 in the late morning deals on persistent month-end dollar demand from importers on the back of strengthening in the US currency overseas.
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