Sensex, Nifty bounce back sharply in early trade amid rally in Asian peers

PTI, Aug 6, 2024, 10:44 AM IST

Mumbai: Equity market benchmark indices Sensex and Nifty bounced back sharply in early trade on Tuesday after facing a severe drubbing in the previous trade tracking a smart rebound in Asian peers.

The 30-share BSE Sensex jumped 1,092.68 points to 79,852.08 in early trade. The NSE Nifty surged 327 points to 24,382.60.

All the 30 Sensex firms were trading in the positive territory during the early trade. Tata Motors, Tech Mahindra, HCL Technologies, JSW Steel, HCL Technologies and Infosys were the biggest gainers from the pack.

Asian markets also rebounded sharply, where Seoul, Tokyo, Shanghai and Hong Kong were quoting significantly higher. Japan’s benchmark stock index soared over 10 per cent.

The US markets ended with deep cuts on Monday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 10,073.75 crore on Monday, according to exchange data.

Global oil benchmark Brent crude jumped 1.27 per cent to USD 77.27 a barrel.

“When market valuations are elevated, unexpected news and events trigger a market crash. This was what happened yesterday in most asset classes, globally. Fears of recession in the US and unwinding of the Yen carry trade along with tensions in the Middle East contributed to the crash,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

It is important to understand that the correction in India was relatively lower compared to most markets. Once again, domestic investors came to the rescue of the market with DII buying Rs 9,155 crore when FIIs sold for Rs 10,073 crore in the cash market, he added.

The BSE benchmark plummeted 2,222.55 points or 2.74 per cent to settle at over a month’s low of 78,759.40 on Monday, marking its worst single-day retreat since June 4, 2024. During the day, it tanked 2,686.09 points or 3.31 per cent to 78,295.86.

The NSE Nifty slumped 662.10 points or 2.68 per cent to settle at 24,055.60. During the day, it tumbled 824 points or 3.33 per cent to 23,893.70. Nifty also saw its worst single-day fall since June 4, 2024, when markets crashed more than 5 per cent after the general election results.