Markets rebound in early trade after five days of slump


People walk past the Bombay Stock Exchange (BSE) building in Mumbai. File

People walk past the Bombay Stock Exchange (BSE) building in Mumbai. File
| Photo Credit: Reuters

Equity market benchmark indices Sensex and Nifty rebounded in early trade on July 26 after staying on the back foot for the past five straight sessions, helped by value buying at lower levels and rally in blue-chips Infosys, Tata Consultancy Services and Reliance Industries.

The 30-share BSE Sensex climbed 235.23 points to 80,275.03 in early trade. The NSE Nifty went up 86.6 points to 24,492.70.

From the Sensex pack, Bharti Airtel, Tata Steel, Infosys, JSW Steel, Bajaj Finance, HCL Technologies, Tata Consultancy Services and Reliance Industries were the biggest gainers. Tech Mahindra, HDFC Bank, Nestle and Maruti were among the laggards.

The unique feature of the bull market in India is its ability to climb all walls of worry. The market dismissed all concerns relating to elections, the Budget and the correction in the mother market U.S. The buy on dips strategy which has played out well in this rally continues to hold good, said V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

After a sharp fall in intra-day trade on July 25, the BSE benchmark managed to recover some of the lost ground to settle 109.08 points or 0.14% lower at 80,039.80. The NSE Nifty dipped 7.40 points or 0.03% to 24,406.10. In five days, the BSE benchmark Sensex tumbled 1,303.66 points or 1.60%, while the Nifty declined 394.75 points or 1.59%.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,605.49 crore on Thursday, according to exchange data.

In Asian markets, Seoul, Tokyo, and Hong Kong were trading higher while Shanghai quoted lower. The U.S. markets ended mostly lower on July 25. Global oil benchmark Brent crude climbed 0.19% to $82.53 a barrel.

“The US economy’s 2.8% growth in Q2 confirms it won’t slip into recession, and we expect the Federal Reserve to start cutting interest rates by September due to easing inflation,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

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