Indian equity indices rebounded during early trade on Thursday, pausing their losing streak of the past three sessions. The recovery came on the back of gains in other Asian markets along with buying support in SBI and Reliance Industries.
The 30-stock SENSEX index was trading 310 points higher at 73,254 levels. The broader NIFTY50 gauge also rose over 122 points to 22,270 in initial deals. Power, banking and metal stocks led the upmove, buoyed by positive sentiment overseas.
In the previous three trading days, the BSE benchmark had shed over 2,094 points or nearly 3% due to rate hike worries. However, markets in other parts of Asia opening in the green on Thursday lent some support to domestic indices.
Shares of State Bank of India and Reliance Industries provided the base, as both counters surged over 1% each. Other gainers included Tata Steel, Mahindra & Mahindra, Bharti Airtel and Larsen & Toubro. On the other hand, IT stocks like HCLTech and Tech Mahindra retreated from recent highs.
Globally, Tokyo, Hong Kong, Shanghai bourses started off on a positive note. Wall Street ended sharply lower in overnight US trade amid mixed economic signals. Crude oil prices edged higher, helping sentiments on Dalal Street.
Going forward, investors will keep an eye on inflation readings from major economies for clues on central banks' next moves on interest rates. Overall, the mood remains volatile amid elevated valuations and tightening financial conditions.
