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Indian Markets Bounce Back – Sensex Reclaims 80,000

Asktraders News Team trader
Updated 28 Oct 2024

After a week of decline, India's stock markets saw a positive rebound to start the new week, with the two key benchmark indices breaking their five-day losing streak.

The Bombay Stock Exchange's (BSE) benchmark index, the Sensex, climbed 602.75 points (+0.76%) to close the session above the psychologically important level of 80,000, ending the day 5.04 higher. Meanwhile, the National Stock Exchange's (NSE) Nifty 50 rose by 158.35 points (+0.65%), ending at 24,339.15.

Despite this positive turn, the broader market sentiment has been affected by substantial selloffs by Foreign Portfolio Investors (FPIs). In October alone, FPIs sold off Rs 85,790 crore worth of Indian stocks, as per the National Securities Depository Limited (NSDL) data. This reversed their previous stance, as FPIs had been net buyers for the preceding four months.

Additionally, analysts point to weak corporate earnings during the July-September quarter, which may have contributed to the recent bearish trend among India Inc's businesses. This has been a key area of concern for investors watching the bottom-line growth of major enterprises.

Notable risers on the SENSEX today include ICICI Bank (+2.96%), Adani Ports and Special Economic Zone Limited (+2.8%), JSW Steel Limited (+2.54%), and Tata Steel Limited (+2.5%). Reliance Industries Ltd turned ex-date for bonus issue in the ratio of 1:1 today, leading to the stock being priced half it's previous level, it is important to note whilst the stock may be showing negative on many apps and ticker tapes today, this is not a fair reflection for those holding the Reliance which gained mildly on the day.

The larger decliners on the index include Axis Bank(-1.43%), Kotak Mahindra Bank (-1.03%), and Tech Mahindra (-0.83%).

Of the major Nifty 50 movers, Shriram Finance (+5.39%) and Adani Enterprises (+3.91%) ended the day at the top of the list; with Coal India (-4.22%), and Bajaj Auto (-1.91%) as the laggards on the day.

As investors navigate this landscape, the stock markets may continue to experience volatility driven by both domestic factors and the broader global economic climate. While the recent bounce back is an encouraging sign, it remains to be seen if the Indian markets will sustain this rebound in the face of ongoing challenges and uncertainties.

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