Indian equity benchmarks Sensex and Nifty rebounded in early trade on Tuesday, driven by buying in blue-chip stocks and a rally in Asian markets. The BSE Sensex rose over 300 points to trade above 73,000, while the NSE Nifty gained around 100 points to cross the 22,200 mark.
Market Recovery
The recovery comes after a sharp sell-off in the previous session, which was triggered by weak global cues and concerns over rising COVID-19 cases in China. However, positive sentiment in Asian markets, including Japan, South Korea, and China, provided a boost to domestic indices.
Blue-Chip Buying
Blue-chip stocks such as Reliance Industries, HDFC Bank, and ICICI Bank were among the top gainers, contributing significantly to the market's rebound. Analysts attributed the buying to value hunting at lower levels and expectations of strong corporate earnings.
Sectoral Performance
All sectoral indices traded in the green, with IT, banking, and auto stocks leading the gains. The broader markets also performed well, with the BSE midcap and smallcap indices rising over 0.5% each.
Global Cues
Asian markets rallied on Tuesday, tracking overnight gains on Wall Street, where the S&P 500 and Nasdaq closed higher. Investors are also keeping an eye on the US Federal Reserve's policy meeting later this week, which could provide further direction to global markets.
Outlook
Market experts believe that the near-term trend remains positive, supported by strong domestic fundamentals and expectations of a good monsoon season. However, they caution that volatility may persist due to global uncertainties and the ongoing pandemic situation.
At 10:15 am, the Sensex was trading at 73,125.67, up 312.45 points or 0.43%, while the Nifty was at 22,212.45, up 92.15 points or 0.42%. The broader market indices also traded higher, with the BSE 500 index up 0.4%.
