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After a prolonged downturn lasting five consecutive sessions, equity benchmark indices Sensex and Nifty witnessed a rebound in early trade on Tuesday, buoyed by value buying at lower levels.
The 30-share BSE Sensex climbed 117.57 points to reach 74,571.98 in initial trade, while the NSE Nifty advanced by 31.3 points to 22,584.65. As trading progressed, the Sensex further surged 272.39 points, reaching 74,725.89, and the Nifty moved up by 47.45 points to 22,600.80.
Among the top gainers in the Sensex pack were Mahindra & Mahindra, Zomato, Adani Ports, Bajaj Finserv, Bajaj Finance, and Bharti Airtel. Conversely, Power Grid, Larsen & Toubro, Sun Pharma, and NTPC were among the laggards.
Over the past five trading sessions, the BSE benchmark had suffered a decline of 1,542.45 points, or 2 per cent, while the Nifty dropped by 406.15 points, or 1.76 per cent, as per PTI reports.
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According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, "The market is currently oversold, large-cap valuations are reasonable, and short positions are substantial. This scenario sets the stage for a potential rebound, particularly if short-covering takes place. However, the core concern remains the unrelenting selling pressure from foreign institutional investors (FIIs) in the cash market."
He further stated that domestic institutional investors (DIIs) have played a crucial role in preventing a deeper downturn, despite sustained FII selling. "The uncertainty surrounding Trump tariffs will continue to weigh on global markets," he added.
Exchange data reveals that FIIs offloaded equities worth Rs 6,286.70 crore on Monday, while DIIs absorbed Rs 5,185.65 crore in domestic equities, mitigating some of the downward pressure.
Prashanth Tapse, Senior Vice President (Research) at Mehta Equities Ltd, expressed concerns over the magnitude of FII selling. "With FIIs having sold over Rs 6,000 crore worth of Indian equities on Monday alone and offloading more than Rs 1 lakh crore since the beginning of this year, there is growing apprehension about how long domestic inflows can continue to offset overseas investor exits," he stated.
In the broader Asian markets, indices in Seoul, Tokyo, Shanghai, and Hong Kong were trading lower, following weak global cues. Meanwhile, US markets closed mostly in negative territory on Monday.
On the commodities front, the global oil benchmark Brent crude registered a 0.51 per cent rise, trading at USD 75.16 per barrel, as per PTI reports.
Monday's session saw the Sensex plummeting by 856.65 points, or 1.14 per cent, to close at 74,454.41, while the Nifty recorded a steep decline of 242.55 points, or 1.06 per cent, to settle at 22,553.35, highlighting the volatility in the markets over the past week.
(With inputs from PTI)
