Sensex, Nifty rebound in early trade as domestic buying offsets FII selling

Sensex and Nifty rose in early trade on Wednesday, supported by value buying and positive Asian cues. Domestic investors provided support despite heavy FII outflows. Brent crude gained, while select Sensex stocks led gains, and ICICI Bank, HDFC lagged.

Mumbai: Benchmark indices Sensex and Nifty rebounded in early trade on Wednesday driven by value buying at lower levels and a positive trend in Asian markets.

Steady buying activity by domestic institutional investors also brought comfort to the markets, according to experts.

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The 30-share BSE Sensex climbed 201.23 points to 84,881.09 in early trade. The 50-share NSE Nifty went up by 64.8 points to 25,924.90.

From the Sensex firms, Eternal, State Bank of India, Bajaj Finance, Axis Bank, Tata Consultancy Services and Tata Motors Passenger Vehicles were among the major gainers.

However, ICICI Bank, Trent, HDFC Bank and Sun Pharma were among the laggards.

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 mostly lower on Tuesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,381.92 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 1,077.48 crore, according to exchange data.

Steady domestic inflows through SIPs and insurance channels continue to provide a strong structural buffer, helping to limit downside risks, Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Brent crude, the global oil benchmark, jumped 1.19 per cent to USD 59.62 per barrel.

On Tuesday, the Sensex tanked 533.50 points or 0.63 per cent to settle at 84,679.86. The Nifty dropped 167.20 points or 0.64 per cent to 25,860.10.