Indian stock market reversed its two-session downtrend on Monday, with the benchmark Sensex rising by over 470 points and the NSE Nifty by 133 points after an emergence of buying in recently beaten-down banking counters amid easing fear’s on global trade war.
Also, markets received some support from strengthening of rupee against the dollar.
Participants indulged in value-buying in shares of beaten-down counters like bank, financial and metal as signs of some easing in trade war rekindled positive sentiments on global bourses.
“Market witnessed strong gains after a flat opening following positive cues from European and Asian peers signalling some ease in a trade war. Short-covering in banking sector from the oversold level supported the gains. However, investors are likely to remain cautious ahead of F&O expiry and limited trading days for the week, limiting potential upside,” Vinod Nair, Head of Research, Geojit Financial Services, said.
The domestic market recovered from its early losses, with banking, metal, finance consumer durables, capital goods, auto, PSU and realty stocks showing strength.
The Sensex bounced back to regain the 33,000-level and touched a high of 33,115.41 as banking and financial shares saw heavy buying, gaining up to 6.16 per cent.
The benchmark finally settled at 33,066.41, showing a gain of 469.87 points, or 1.44 per cent. This is the biggest single day gain since March 12, when it recorded a sharp gain of 610.80.
However, during the day, it had touched a low of 32,515.17.
The index had lost 539.64 points in the previous two sessions following a global sell-offs due to fears of a trade war as US President Donald Trump announced tariffs on Chinese goods.
The broader NSE Nifty reclaimed the key 10,000-mark and touched a high of 10,143.50 before finally settling at 10,130.65, showing a gain of 132.60 points, or 1.33 per cent. Intra-day, it hit a low of 9,958.55.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 1,628.19 crore, while domestic institutional investors (DIIs) sold equities to the tune of Rs 935.41 crore last Friday, provisional data showed.
Among the major gainers were: Yes Bank 5.67 per cent, SBI 5.01 per cent, HDFC Bank 2.91 per cent, Tata Steel 2.80 per cent, HDFC 2.66 per cent, Bharti Artl 2.55 per cent, L&T 2.16 per cent, ICICI Bank 2.05 per cent, M&M 1.98 per cent, Hero Motoco 1.94 per cent, Maruti 1.87 per cent and Bajaj Auto 1.68 per cent.
However, Wipro, Infosys, and TCS ended in the negative zone, falling up to 3.96 per cent on strengthening rupee against the dollar.
Among BSE sectoral and industry indices, bankex rose by 2.30 per cent, metal 2.27 per cent, finance 2.26 per cent, consumer durables 2.24 per cent, telecom 1.74 per cent, capital goods 1.60 per cent, auto 1.45 per cent, realty 1.23 per cent and industrials 1 per cent.
While IT fell by 0.68 per cent, oil & gas 0.31 per cent and teck 0.08 per cent.
The market breadth remained negative as 1,550 shares ended lower, 1,204 closed higher while 173 ruled steady.
European stock markets recovered slightly at the start of trading today following a worldwide slump for equities ahead of the weekend break and short-covering.
Global sentiments improved slightly following reports that the United States and China have quietly started negotiations to improve US access to Chinese markets, thereby easing fears of a trade war between the two economic giants.
In the global markets, European stocks edged higher and Asian stocks reversed earlier losses on hopes that talks between the US and China could prevent any escalation of the trade dispute between the two countries.
In the Asian region, Japan’s Nikkei ended 0.72 per cent higher and Hong Kong’s Hang Seng rose 0.79 per cent, while Shanghai Composite Index shed 0.60 per cent.
In Europe, Frankfurt’s DAX inched up 0.63 per cent, while Paris CAC 40 rose 0.31 per cent in their early deals. London’s FTSE too was up 0.30 per cent.