Sensex jumps over 400 points in early trade
Equity benchmark Sensex rallied over 400 points in early trade on Thursday, tracking gains in index majors HDFC Bank, Infosys, and ICICI Bank amid a positive trend in global markets. The 30-share BSE index was trading 444.17 points or 0.85 percent higher at 52,642.68 in initial deals, while the broader NSE Nifty surged 129.15 points or 0.83 percent to 15,761.25.
Who were the top gainers and losers?
Bajaj Finance was the top gainer in the Sensex pack, rising over three percent, followed by Tata Steel, HDFC Bank, HUL, ICICI Bank, and Infosys. On the other hand, Asian Paints, PowerGrid, Bajaj Auto, and Dr. Reddy's were among the laggards.
Sensex ended 0.68 percent lower in the previous session
In the previous session on Tuesday, Sensex ended 354.89 points or 0.68 percent lower at 52,198.51, while the broader NSE Nifty fell 120.30 points or 0.76 percent to 15,632.10. Stock markets were closed on Wednesday due to Bakri Id. Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs. 2,834.96 crore on Tuesday, as per provisional exchange data.
Domestic equities likely to see recovery during the day: Expert
According to Binod Modi Head-Strategy at Reliance Securities, domestic equities are likely to see some recovery during the day. "Selling pressure especially in financials due to concerns over asset quality dragged the market in last couple of days. Further, mounting concerns over global growth due to recent rise in delta variant coronavirus cases in the world's different parts have weighed on sentiments," he said.
Expert recommends buying quality stocks
"However, we continue to believe that the underlying strength of the domestic market remains intact and therefore any meaningful correction in the market should be taken as an opportunity to get in some quality stocks," he stated. "On the global front, the US equities recovered sharply in the last two days," the expert further added.
Brent crude was trading at $71.94 per barrel
"The US equities recovered sharply as strong earnings reported by corporates and buy-on-dips in an improving economy trend overshadowed concerns with regards to spread of delta plus variants in various countries," Modi said. Bourses in Shanghai, Hong Kong, Seoul, and Tokyo were trading with strong gains in mid-session deals. Meanwhile, international oil benchmark Brent crude declined 0.40 percent to $71.94 per barrel.