Sensex, Nifty rebound on value buying

Mumbai: Benchmark Sensex rebounded 239 points, while NSE Nifty ended its seven-day losing streak on Tuesday following value-buying in banking, IT and auto shares amid mixed global trends. Snapping its four days of decline, the 30-share Sensex climbed 239.37 points or 0.31 per cent to settle at 77,578.38. The index opened with gains and spurted further 1,112.64 points or 1.43 per cent to hit the day’s high of 78,451.65. However, fag-end decline in Reliance Industries restricted the market rally. The NSE Nifty also bounced back after seven straight sessions of losses. The broader 50-issue barometer gained 64.70 points or 0.28 per cent to settle at 23,518.50. The index jumped over 300 points to hit 23,780 level in the day.

Leading stock exchanges BSE and NSE have declared a trading holiday on November 20 for Assembly elections in Maharashtra.

“A strong bounce back due to bottom fishing was short-lived as caution prevails in the market. Investors tend to use every opportunity to book profit amidst consistent FII selling and weak Q2 earnings. Profit-booking was also seen ahead of the upcoming Maharashtra state election,” said Vinod Nair, head (research), Geojit Financial Services.

Stock markets were on a decline in the past seven sessions with Nifty tanking 1,030 points or over 4.3 per cent due to FII selling, weaker-than-expected quarterly results and strengthening US bond yields. Sensex plunged more than 3,000 points to 77,300 levels during the period.

“The recent correction in valuation suggests a potential pause in further price erosion. However, the recovery will depend on an uptick in earnings which is likely to rebound due to the likely spurt in central and state expenditure in H2,” Nair added.