Stock markets snap 3-day slump; Sensex rebounds 875 pts on value buying in metal, energy shares

PTI, Aug 7, 2024, 5:18 PM IST

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Mumbai: Benchmark stock indices Sensex and Nifty bounced back sharply on Wednesday after three straight days of slump following a rally in global peers and value-buying in metal, IT and oil shares at lower levels.

The 30-share BSE Sensex rallied 874.94 points or 1.11 per cent to settle at 79,468.01 with 25 of its constituents ending with gains and five with losses. During the day, it jumped 1,046.13 points or 1.33 per cent to 79,639.20.

The NSE Nifty jumped 304.95 points or 1.27 per cent to 24,297.50. Intra-day, it surged 345.15 points or 1.43 per cent to 24,337.70.

Among Sensex firms, Adani Ports & SEZ rose the most by 3.42 per cent. Power Grid climbed 3.39 per cent, Tata Steel by 2.4 per cent and JSW Steel by 2.61 per cent. Infosys, HDFC Bank, ITC, Reliance Industries, Mahindra & Mahindra, Maruti, and Larsen & Toubro also advanced.

IndusInd Bank, Bharti Airtel, Hindustan Unilever, Tech Mahindra and Titan were the laggards.

Most sectors contributed to the upward movement, with metals, energy, and pharma being the top performers.

“Global markets experienced a notable rebound after the BoJ’s Deputy Governor reassured that the central bank would not raise interest rates during a period of financial instability. The Indian market also witnessed broad-based buying across sectors, with the realty sector seeing a relief rally due to the reinstatement of indexation benefits,” said Vinod Nair, Head of Research, Geojit Financial Services.

In the broader market, the BSE midcap gauge jumped 2.63 per cent and smallcap index climbed 2.39 per cent.

All indices ended in the positive territory. Oil & Gas jumped 3.75 per cent, metal surged 3.44 per cent, energy (3.32 per cent), capital goods (2.89 per cent), telecommunication (2.80 per cent), services (2.53 per cent), commodities (2.49 per cent), healthcare (2.03 per cent).

Ajit Mishra – SVP, Research, Religare Broking Ltd said that markets experienced a breather after the recent decline, gaining over a percent, driven by strong global cues.

As many as 2,985 stocks advanced while 948 declined and 98 remained unchanged.

Asian markets settled in the positive territory, where Seoul, Tokyo, Shanghai and Hong Kong ended significantly higher.

European markets also rallied. The US markets ended higher on Tuesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,531.24 crore on Tuesday, according to exchange data.

DIIs bought equities worth Rs 3,357.45 crore on Tuesday.

Global oil benchmark Brent crude jumped 1.12 per cent to USD 77.34 a barrel.

Falling for the third straight day on Tuesday, the BSE benchmark settled at 78,593.07, down 166.33 points or 0.21 per cent. Similarly, the Nifty declined 63.05 points or 0.26 per cent to settle below the 24,000 level at 23,992.55.