Indian markets rebound, but rising oil prices keep investors cautious
On Monday, Indian equity markets staged a comeback following four days of losses, with both the BSE Sensex and NSE Nifty seeing notable gains as investors sought to take advantage of cheaper stock prices. However, analysts warn that this recovery ...
By ET Bureau | Updated:
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The BSE Sensex rose 482.92 points, or 0.66%, to close at 73,606.75, while the NSE Nifty advanced 153.20 points, or 0.68%, to settle at 22,753.20.
Mumbai: Indian equity benchmarks rebounded late Monday after an attritional morning trade, recovering from initial losses as investors picked up beaten-down stocks after four consecutive sessions of declines. The BSE Sensex rose 482.92 points, or 0.66%, to close at 73,606.75, while the NSE Nifty advanced 153.20 points, or 0.68%, to settle at 22,753.20.
Analysts said the recovery was driven by buying at lower levels after the recent selloff. Ajit Mishra, SVP-Research, Religare Broking, said the benchmarks recovered from intraday lows after a weak start, with buying emerging at lower levels. The Nifty closed near the day's high, providing some relief after four sessions of selling.
However, Mishra cautioned that the rebound remained tentative, with elevated crude prices, geopolitical uncertainty and concerns over the global interest-rate outlook continuing to weigh on sentiment. Domestic equities had ended last week on a weak note amid rising crude oil prices and escalating tensions in West Asia, fuelling concerns over inflation and corporate earnings. The Nifty fell 2.4% during the week, while the Sensex declined 2.2%.
Brent crude futures traded around $114.5 a barrel, easing from a near six-month high of $117 after Indian markets closed on Friday. However, Houthi attacks on Saudi Arabia kept global oil supply worries in focus.
Buying extended beyond frontline stocks, with the Nifty Midcap 150 index gaining 1.07% and the Nifty Smallcap 250 Index rising 1.13%. Metals, pharmaceuticals, healthcare, oil and gas stocks advanced, while media and consumer durables remained under pressure. The India VIX, a gauge of market volatility, rose 1.73%, indicating continued caution among investors despite the recovery in benchmark indices.
Among individual stocks, Kotak Mahindra Bank gained more than 2% after reporting a better-than-expected second-quarter profit, driven by robust loan demand and lower provisions for bad loans. Shriram Finance, however, fell 5% after lowering its annual loan-growth forecast and flagging higher credit costs.
Foreign portfolio investors were net sellers of Indian equities worth ₹1,462 crore on Monday, taking their cumulative net outflows for so far in October to ₹52,928 crore. Domestic institutional investors, meanwhile, were net buyers to the tune of ₹2,609 crore, raising their total net purchases to ₹61,719 crore in October so far.
