Indian stock markets rebounded sharply in early trade on Tuesday, recovering from the previous session's losses. The BSE Sensex surged over 500 points to trade above 58,600, while the NSE Nifty climbed above 17,400 levels. The positive momentum was driven by buying in IT, banking, and auto stocks, amid mixed global cues.
Market Performance
The 30-share BSE Sensex jumped 505.34 points to 58,614.37 in early trade. Similarly, the broader NSE Nifty gained 145.70 points to 17,417.50. Among the Sensex pack, Tech Mahindra, Infosys, HCL Tech, TCS, and Wipro were the top gainers, rising up to 2.5 percent. Banking stocks also contributed to the rally, with HDFC Bank, ICICI Bank, and Kotak Mahindra Bank gaining between 1-2 percent.
Sectoral Trends
All sectoral indices were trading in the green, with IT, banking, and auto indices leading the gains. The BSE IT index rose 1.8 percent, while the bankex gained 1.2 percent. The auto index was up 0.9 percent, driven by strong buying in Maruti Suzuki and Mahindra & Mahindra. The broader markets also performed well, with the BSE midcap and smallcap indices rising 0.7 percent and 0.5 percent, respectively.
Global Cues
Asian markets were trading mixed, with Japan's Nikkei and China's Shanghai Composite trading flat, while Hong Kong's Hang Seng gained 0.5 percent. US markets ended lower on Monday, with the Dow Jones falling 0.3 percent, while the S&P 500 and Nasdaq Composite declined 0.2 percent each. However, positive cues from European markets and a slight easing in crude oil prices supported domestic sentiment.
Expert Views
Market analysts attributed the rebound to value buying at lower levels after the recent correction. They also noted that the IT sector is seeing renewed interest due to strong earnings prospects. However, they cautioned that volatility may persist due to global macroeconomic concerns, including rising interest rates and geopolitical tensions.
Outlook
Experts expect the market to remain range-bound in the near term, with a focus on quarterly earnings and global developments. The RBI's monetary policy decision next week will also be a key trigger. Investors are advised to adopt a cautious approach and focus on quality stocks with strong fundamentals.
