Sensex gains 550 points after 2% drop on budget day
After a rough post-budget Sunday, Indian stock markets bounced back on Monday—Sensex climbed more than 550 points from its low, while the Nifty's recovery was much smaller.
This quick turnaround came as investors spotted bargains after the previous day's nearly 2% drop, triggered by the government's plan to hike taxes on trading derivatives.
Investors react to proposed tax on trading derivatives
If you're following the markets or thinking about investing, today's rebound shows how quickly things can shift.
Some analysts noted value buying, so there might be more selective buying as investors react to the proposed tax on trading derivatives.
Plus, falling oil prices could help keep inflation in check and support stock values.
Adani Group stocks lead the charge
Bargain hunting led the charge—Adani Green Energy jumped 4% after issuing a fresh clarification regarding a civil case filed by the US Securities and Exchange Commission, while Adani Ports, L&T, and Asian Paints each gained around 3%.
Not all news was good though: ITC slid another 1.2% thanks to higher excise duties.
Overall, more stocks fell than rose today, but value buyers gave the market a much-needed lift.