Indian Sensex and Nifty rebound after early losses, driven by value buying and easing oil prices
The Sensex rose about 800 points from its intraday low and the Nifty climbed above 22,650 on Monday as investors purchased beaten-down stocks, aided by lower crude prices and foreign inflows.
Indian benchmark indices recovered on Monday after early declines, with the BSE Sensex trading at 73,327.52, up 203.69 points (0.28%), and the NSE Nifty at 22,653.25, up 53.25 points (0.24%). Earlier in the session the Sensex had slipped to 72,514.57 and the Nifty to 22,387.35.
Analysts attributed the reversal to several factors. Value investors returned to stocks that had fallen for four straight sessions, while Brent crude futures eased to around $114.5 a barrel after peaking near $117, easing inflation concerns despite ongoing supply worries linked to attacks on Saudi Arabia. Foreign institutional investors purchased equities worth Rs 887.65 crore on the previous Friday, and net foreign selling moderated, with overseas investors turning net buyers on two days last week. Positive cues from Asian markets, including a gain in Hong Kong’s Hang Seng, and higher US stock futures also supported sentiment.
Among individual stocks, Kotak Mahindra Bank rose more than 2% after reporting a second-quarter profit beat driven by strong loan demand and lower bad-loan provisions. In contrast, Shriram Finance fell 5% after cutting its annual loan-growth outlook and citing higher credit costs.
"Nifty opened on a lower note near the 22,524 mark and continues to face sustained selling pressure, reflecting a deterioration in the near-term technical structure. The 22,400–22,300 zone represents the immediate support band, and a sustained breakdown below this range could accelerate the downside towards the 22,200–22,000 zone," said Ponmudi R, CEO of Enrich Money.
"On the upside, 22,600 now acts as the immediate resistance, followed by a stronger hurdle at 22,800. Unless the index reclaims these levels, the prevailing bearish momentum is likely to persist. Momentum indicators have weakened considerably, with the RSI slipping to 39, indicating strong selling pressure and a bearish near-term bias," he added.