Sensex surged more than 900 points; Nifty traded nearly 300 points up
The Indian benchmark indices rebounded vigorously on Tuesday following a lackluster performance on Monday, with the Sensex surging over 900 points and Nifty trading nearly 300 points higher in early morning trade.
Despite concerns over global economic stability triggered by significant declines in the Nasdaq and S&P indices, which fell by at least 3 percent during US trading hours on Monday amid fears of a looming recession due to sluggish job growth, the Indian markets opened on a positive note.
The Sensex, tracking the top 30 stocks on the Bombay Stock Exchange (BSE), surged by 905 points to reach 79,365, marking a gain of 1.15 percent. Similarly, the broader Nifty index, comprising 50 major stocks on the National Stock Exchange (NSE), climbed 296 points to trade at 24,455, reflecting a gain of 1.22 percent.
Investors in India appeared to shrug off international uncertainties as buying sentiment picked up across sectors, driving the indices sharply upwards in the opening hours of trading. Market analysts attributed the rebound to bargain hunting and renewed optimism among investors.
Bharti Airtel’s shares gained in the opening trade after strong Q1 FY25 results. Bharti Airtel’s net profit swelled 158 percent (year-on-year) to Rs.4,160 crore, beating Street expectations (due to exceptional items).
ONGC also gained 2.5 percent despite its Q1 profit declining 43 percent.
Meanwhile, Tokyo stocks also went up more than 10 percent as the yen eased following steep gains against the dollar. On Monday, the Nikkei shed 12.40 percent which was the largest drop ever.
South Korean stocks also traded 3 percent higher on Tuesday following the previous day’s worst collapse driven by US recession woes. The benchmark Korea Composite Stock Price Index (KOSPI) added 74.59 points, or 3.06 percent.
The MSCI Asia Pacific Index surged around 4 percent after a crash of more than 6 percent on Monday.
According to market watchers, it is important to understand that on Monday, the correction in India was relatively lower compared to most markets.
Domestic investors came to the rescue of the market with DII buying Rs.9,155 crore when FIIs sold for Rs.10,073 crore in the cash market.
Meanwhile, there are fears that the US Federal Reserve may have delayed a cut in interest rates too long keeping it up at a two-decade high.
It is expected to announce cuts anywhere from 0.25 percentage points to 0.75 percentage points after its next meeting, which is due on September 18.
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