Mkts rebound on lower crude; banking and IT stocks shine

Mumbai: Benchmark equity indices rebounded sharply on Wednesday, with the BSE Sensex rising 790.54 points, or 1.04 per cent, to close at 76,991.22, while the NSE Nifty gained 197.55 points, or 0.83 per cent, to settle at 24,021.65, as easing crude oil prices and strong buying in banking and IT stocks boosted investor sentiment.

The rally came a day after a sharp sell-off, with improved risk appetite driven by falling global crude prices following easing concerns over disruptions in the Strait of Hormuz. Expectations of an early India-US bilateral trade agreement and renewed foreign institutional investor (FII) buying further supported the market.

During the session, the Sensex climbed as much as 989.69 points before trimming gains. On the BSE, 2,215 stocks advanced, 2,034 declined and 181 remained unchanged.

Among Sensex gainers, InterGlobe Aviation, Trent, Tech Mahindra, Bajaj Finance, ICICI Bank, Infosys, HDFC Bank and Tata Consultancy Services led the rally. NTPC, Tata Steel, Maruti and Bharat Electronics ended lower.

The BSE Private Banks index surged 2.21 per cent, followed by Realty (2.17 per cent), Services (2.14 per cent), IT (1.81 per cent) and Bankex (1.78 per cent). Small-cap and mid-cap indices also closed in positive territory.

Brent crude fell 1.69 per cent to USD 75.78 a barrel, easing concerns over inflation and India’s import bill. FIIs bought equities worth Rs 17.86 crore on Tuesday, according to exchange data.

Market experts said lower oil prices, easing geopolitical tensions in the Middle East, strength in banking and IT stocks, and optimism over the proposed India-US trade deal helped restore investor confidence.

Positive cues from most Asian markets also aided the recovery, although US markets had ended sharply lower overnight.