Markets snap 5-day losing slide as investors turn to bargain hunting
Energy, banking and metal stocks led the rally. However, escalating geopolitical tensions and unrelenting FII outflows capped sharp gains
Mumbai: Equity benchmark indices Sensex and Nifty found firmer ground on Monday after facing a massive drubbing in the past five trading sessions, propelled by bargain hunting in energy, banking and metal stocks amid renewed optimism surrounding a potential India-US trade deal. However, escalating geopolitical tensions and unrelenting foreign fund outflows capped the sharp gains, traders said.
In volatile trading, the 30-share BSE Sensex climbed 301.93 points, or 0.36 per cent, to settle at 83,878.17. During the morning trade, it tumbled 715.17 points, or 0.85 per cent, to 82,861.07, breaching the 83,000 level. The 50-share NSE Nifty edged higher by 106.95 points, or 0.42 per cent, to 25,790.25. The benchmark tanked 209.9 points, or 0.81 per cent, to 25,473.40 in morning trade.
The session began on a cautious note, but sentiment improved sharply in the latter half of the day after optimistic remarks from US Ambassador Sergio Gor, as the market staged a strong recovery.
"Sentiment was shaped by a combination of global and bilateral developments. Early caution reflected ongoing geopolitical tensions and global trade uncertainties that weighed on risk appetite.
"However, the mood improved in the afternoon after reports suggested that India–US trade discussions are progressing and are set to continue, which encouraged value buying and eased some concerns. This change in tone, along with selective bargain hunting after recent declines, supported the late-session rebound," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
From the 30-Sensex firms, Tata Steel, Asian Paints, Trent, State Bank of India, Hindustan Unilever, UltraTech Cement, ICICI Bank and Bharti Airtel were among the gainers. On the other hand, Infosys, Bajaj Finance, Bharat Electronics, Larsen & Toubro and HDFC Bank were the laggards.
The BSE smallcap gauge declined 0.68 per cent, and the midcap index dipped 0.41 per cent. Safe-haven assets remained in demand as geopolitical tensions persisted, helping precious metals extend their rally.
