Sensex, Nifty rebound in early trade after sharp fall

Sensex and Nifty rebounded in early trade on Wednesday on value buying after a sharp fall in the previous session. Gains remained limited by elevated oil prices, foreign fund outflows and caution ahead of the US Federal Reserve’s policy decision.

Mumbai: Market benchmark indices Sensex and Nifty rebounded in early trade on Wednesday on value buying after falling sharply in the previous session.

Although, elevated oil prices, caution ahead of the US Federal Reserve’s policy decision and foreign fund outflows capped the rally in the markets.

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The 30-share BSE Sensex climbed 244.02 points to 74,293.25 in early trade. The 50-share NSE Nifty was up 77.20 points to 23,201.85.

Among the 30 Sensex firms, Mahindra & Mahindra, Reliance Industries, Hindustan Unilever, HCL Tech, ITC and State Bank of India were among the major winners.

InterGlobe Aviation, Tata Steel, Tata Consultancy Services and Eternal were among the laggards.

Brent crude, the global oil benchmark, traded 0.63 per cent lower at USD 108.1 per barrel

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index quoted in positive territory.

US markets ended lower on Tuesday.

Recovery in the market may remain fragile as Brent crude hovers near USD 108 a barrel and elevated global bond yields continue to weigh on risk appetite, Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a research analyst firm, said.

“The Federal Reserve’s policy decision tonight will be the key market trigger. Although a quarter-point rate increase is widely expected, the market’s direction will depend largely on the Fed’s guidance on the outlook for further tightening. Hawkish commentary could strengthen the dollar and place additional pressure on global equities, the rupee and foreign flows, while balanced guidance may support a relief rally,” Radhakrishnan added.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,977.86 crore on Tuesday, according to exchange data.

On Tuesday, the Sensex tumbled 777.94 points, or 1.04 per cent, to settle at a three-month low of 74,003.82. The Nifty dropped 279.50 points, or 1.19 per cent, to end at 23,118.60, the lowest closing level since April 6.