Sensex, Nifty Rebound In Early Trade After Three-Day Losing Streak

Mumbai, June 4

Benchmark indices Sensex and Nifty bounced back in early trade on Wednesday after a three-session losing streak. The BSE Sensex rose by 230.17 points to reach 80,967.68, while the NSE Nifty climbed 70.25 points to 24,612.75 during early trading hours. On Tuesday, both indices had closed sharply lower. The Sensex had dropped 636.24 points (0.78%) to end at 80,737.51, while the Nifty fell 174.10 points (0.70%) to 24,542.50.

One of the main reasons for a market rebound is the positive global market backdrop, as Asian Markets such as Japan’s Nikkei 225 index, South Korea’s Kospi, and Shanghai’s SSE Composite were trading higher than their last close. Another contributing factor is the U.S. markets ending positively, due to strong job openings data that helped counterbalance concerns over U.S. trade policies, further increasing market sentiment for Indian investors.

Who Are The Top And Worst Performers In The Early Trade? 

Among the top performers in the Sensex pack were Bharti Airtel, Eternal, IndusInd Bank, Maruti, Tata Motors, and Bajaj Finance, which provided strong support to the indices. On the other hand, Tata Consultancy Services, UltraTech Cement, Titan, and ICICI Bank traded in the red, capping broader gains.

What Drove The Rebound?

Apart from a positive global market backdrop, analysts noted that India’s robust macroeconomic fundamentals and steady inflows into mutual funds, particularly through SIP (Systematic Investment Plan) contributions, continue to provide a cushion to the markets. It was long overdue for these factors to have a positive impact on the markets. Furthermore, the growing participation of Indian retail investors has emerged as a stabilising force, contributing to the market rebound.

Market analysts also highlighted that mid-cap stocks outperformed large-caps and small-caps in the fourth quarter, which has largely influenced investor preference, with many looking to invest in mid-cap stocks for the near future.

The Disinterest of Foreign Investment Investors: Is It A Concern?

Foreign Institutional Investors (FIIs) were net sellers on Tuesday, offloading equities worth ₹2,853.83 crore, according to exchange data. However, the markets still showed positive growth in the early trade session on Wednesday.

Meanwhile, Brent crude oil prices edged lower by 0.32%, trading at $65.42 per barrel, offering some relief on the inflation and import cost fronts.

What’s Ahead For The Markets?

With global markets rallying and domestic fundamentals remaining strong, analysts expect the investor sentiment to be high, causing a potential uptrend in the market in the near future. However, foreign fund flows and geopolitical developments will remain key watchpoints.

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