Stock markets rebound in early trade after two days of decline

Indian equities rebounded in early trade as Sensex and Nifty rose on value buying, strong Asian cues and steady domestic inflows, despite recent losses and FII selling, with banks and IT stocks leading gains while some heavyweight stocks lagged marginally

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.