Stock markets bounce back after falling in early trade

Sensex and Nifty rebounded from early losses to trade higher Tuesday, aided by firm global cues and buying in bank stocks. Axis Bank surged after Q3 results, while Kotak Bank fell; investors tracked FII-DII flows and crude prices overseas markets

Mumbai: Equity benchmark indices Sensex and Nifty recovered their early lost ground and were trading higher on Tuesday morning, tracking a firm trend in global markets and buying in blue-chip bank stocks.

The 30-share BSE Sensex dropped 417.68 points to 81,120.02 in early trade. The 50-share NSE Nifty declined 111.1 points to 24,937.55.

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However, soon after both the benchmark indices bounced back and were trading in positive territory. The BSE benchmark quoted 298.06 points higher at 81,814.74, and the Nifty traded 91.85 points up at 25,151.15.

From the 30-Sensex firms, Axis Bank, Adani Ports, UltraTech Cement, Bharat Electronics, Tata Steel, NTPC, State Bank of India and Tech Mahindra were among the biggest gainers.

Axis Bank climbed over 4 per cent after the firm reported a 4 per cent growth in its December quarter net profit to Rs 7,010.65 crore against Rs 6,742.99 crore in the year-ago period.

However, Kotak Mahindra Bank dropped over 4 per cent after its third quarter earnings failed to cheer investors.

Mahindra & Mahindra, Maruti Suzuki, Hindustan Unilever and ICICI Bank were also among the laggards.

Top leaders of India and the European Union will on Tuesday announce the conclusion of negotiations for a landmark trade deal, firm up a strategic defence pact and unveil a broader vision to navigate the geopolitical turbulence and trade disruptions.

Foreign institutional investors offloaded equities worth Rs 4,113.38 crore on Friday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 4,102.56 crore, according to exchange data.

Equity markets were closed on Monday for Republic Day.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index traded higher.

US markets ended higher on Monday.

Brent crude, the global oil benchmark, dipped 0.72 per cent to USD 65.12 per barrel.

On Friday, the Sensex tumbled 769.67 points or 0.94 per cent to close at 81,537.70. The Nifty dived 241.25 points or 0.95 per cent to settle at 25,048.65.