Markets rebound nearly 1 pc; Sensex surges over 760 pts as FMCG, IT shares gain
Mumbai, May 23 (PTI): Equity benchmark indices Sensex and Nifty rebounded sharply by nearly 1 per cent on Friday, propelled by buying in market heavyweights Reliance Industries, HDFC Bank and ITC.
Besides, hopes of a record dividend from the RBI and easing US treasury yields bolstered investor sentiment, traders said.
After a flat start, the 30-share BSE benchmark bounced back and surged 769.09 points or 0.95 per cent to settle at 81,721.08. During the day, it jumped 953.18 points or 1.17 per cent to 81,905.17.
As many as 2,361 stocks advanced while 1,589 declined and 156 remained unchanged on the BSE.
The NSE Nifty rallied 243.45 points or 0.99 per cent to 24,853.15.
On a weekly basis, the BSE benchmark dropped 609.51 points or 0.74 per cent and the Nifty declined 166.65 points or 0.66 per cent.
"The domestic market has recouped nearly half of the week’s losses, supported by gains in FMCG and IT stocks. FMCG benefitted from the early and above-normal monsoon forecast, while IT stocks saw a rebound following a healthy correction.
"Optimism around a potentially record-high dividend from the RBI is boosting hopes for fiscal consolidation, reflected in falling Indian bond yields," Vinod Nair, Head of Research, Geojit Investments Limited, said.
From the Sensex firms, Eternal, Power Grid, ITC, Bajaj Finserv, Nestle, Axis Bank, Kotak Mahindra Bank and Adani Ports were among the biggest gainers.
On the other hand, Sun Pharma was the only laggard, declining nearly 2 per cent.
The company's stock fell after it reported a nearly 19 per cent drop in consolidated net profit for the quarter ended March 31, 2025.
The BSE midcap gauge climbed 0.50 per cent and smallcap index went up by 0.45 per cent.
FMCG jumped 1.49 per cent, utilities (1.02 per cent), power (1.01 per cent), financial services (0.99 per cent), bankex (0.99 per cent), oil & gas (0.94 per cent) and energy (0.82 per cent).
In Asian markets, Japan's Nikkei 225 index and Hong Kong's Hang Seng settled in positive territory, while South Korea's Kospi and Shanghai's SSE Composite index ended lower.
Markets in Europe were trading higher in mid-session deals.
US markets ended largely flat in overnight trade on Thursday.
Global oil benchmark Brent crude dipped 0.23 per cent to USD 64.29 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,045.36 crore on Thursday, according to exchange data.
"Investor attention is further revolving around US-India trade talks and strong domestic macroeconomic indicators. However, recent FII outflows, driven by rising US bond yields amid concerns over mounting US debt, may weigh on the market sentiment," Nair said.
On Thursday, the BSE Sensex tanked 644.64 points, or 0.79 per cent, to settle at 80,951.99. The Nifty tumbled 203.75 points, or 0.82 per cent, to 24,609.70.
"Markets quickly rebounded after a subdued opening, as short-covering helped benchmark indices stay in positive territory thereafter. The market has been volatile throughout the week, as concerns over US fiscal health due to rising debt and interest rates seen unchanged weighed on sentiment," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
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Rupee hits all-time low for second time in a week
Mumbai (PTI): The rupee depreciated 31 paise to settle at 91.99 against the US dollar on Wednesday, touching the lowest closing level for the second time in less than a week, amid increased month-end demand for the greenback.
Forex traders said the rupee opened higher as the US dollar index softened and a long-awaited trade breakthrough with Europe offered quiet reassurance. However, increased month-end demand for the American currency as well as the ongoing geopolitical tensions dented investors' sentiments.
At the interbank foreign exchange, the rupee opened at 91.60 and touched an early high of 91.50, but pared all the gains to touch an intra-day low of 91.99 against the greenback.
The domestic unit settled 31 paise down, revisiting its lowest-ever closing level of 91.99 against the greenback. The Indian currency previously ended at this level on January 23 when it also hit its all-time intraday low of 92 against the US dollar.
On Tuesday, the rupee rebounded from its all-time low levels and gained 22 paise to close at 91.68 against the US dollar.
Analysts said the rupee opened higher as the US dollar index softened and a long-awaited trade breakthrough with Europe bolstered investor sentiment.
India and the European Union on Tuesday announced the conclusion of negotiations for the free trade agreement (FTA), under which a number of domestic sectors such as apparel, chemicals and footwear will get duty-free entry into the 27-nation bloc, while the EU will get access to the Indian market at concessional duty for cars and wines, an official said.
The deal has been dubbed the "mother of all deals" as it will create a market of about 2 billion people.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07 per cent lower at 96.14.
Brent crude, the global oil benchmark, was trading 0.43 per cent lower at USD 67.28 per barrel in futures trade.
On the domestic equity market front, Sensex jumped 487.20 points to settle at 82,344.68, while Nifty surged 167.35 points to 25,342.75.
Foreign Institutional Investors turned net buyers and purchased equities worth Rs 480.26 crore on Wednesday, according to exchange data.
