Indian indices rebound from Monday’s losses as Asian markets see relief surge
In Tuesday’s early trade, both the Sensex and Nifty indexes jumped sharply higher, recovering a significant portion of the steep losses suffered during the previous session. The gains mirrored a positive momentum witnessed across broader Asian share markets as well.
According to data, the 30-share BSE Sensex index had surged over 1,092 points to reach 79,852 in initial exchanges. The broader 50-share NSE Nifty, on the other hand, had gained nearly 327 points to trade at 24,382 – both well above Monday’s closing levels.
Driving the rebound were heavyweights like Tata Motors, Tech Mahindra, HCL Technologies, JSW Steel and IT giant Infosys – emerging as top gainers across the Sensex landscape.
The turnaround in Indian stock indices comes amid a broader relief rally witnessed in other major Asian equity hubs as well on Tuesday morning. Most notably, the benchmark Nikkei 225 in Japan skyrocketed over 10% at one point – recovering sharply from its near 13% single-day collapse witnessed in the previous session. Other key exchanges in South Korea, Hong Kong, Shanghai also showed healthy recoveries.
On Monday, both the Sensex and Nifty suffered their worst percentage declines in months, plummeting over 2% each on growing global recession risks and geopolitical tensions in the Middle East. Data also showed foreign investors offloaded Indian shares worth over Rs. 10,000 crore during the session.
While markets remain choppy in the near-term, experts feel the ongoing correction doesn’t reflect weaknesses in India’s economic fundamentals but is rather a function of elevated valuations globally and ongoing turbulence abroad. Investor focus now shifts to forward guidance from key central banks worldwide in the coming weeks.
