Markets back on feet after huge fall, Sensex rebounds 291 pts

Mumbai :Markets made a solid comeback from one-year lows as the benchmark BSE Sensex rebounded 291 points after the government said it’s considering reconvening a special session of Parliament for passage of the stalled GST Bill.

The Bill could not go through in the last session due to a logjam in Parliament.

Brokers said sentiment got a lift after the government made its intention clear to reconvene the Monsoon Session to pass key reform bills, including GST.

The BSE Sensex started the session higher, hitting a high of 26,124.83, but fell victim to the selling pressure as China equities lost over 7 per cent.

Finally, it ended the day higher by 290.82 points, or 1.13 per cent, at 26,032.38.

In the previous three sessions, the index lost 2,190.08, including yesterday’s biggest-ever fall of 1.624.51 points.

The broad-based NSE Nifty too covered up some lost ground, up 71.70 points, or 0.92 per cent, to end the day at 7,880.70. Intra-day, it moved between a high of 7,925.40 and a low of 7,667.25.

Value-buying in realty, metals and banking stocks gave the recovery a leg-up. Even short-covering by traders helped.

There was a turnaround in rupee’s fortunes as well, which closed 55 paise higher at 66.10 a dollar, which contributed to the improved sentiment, brokers said.

Market volatility remained high in view of expiry of August derivatives contracts on Thursday.

“Markets went into the oversold zone which led to short covering, triggering today’s rise. Appreciation in the rupee and bounceback in global equities too added to the momentum,” said Gaurav Jain, Director, Hem Securities.

Of the 30 Sensex stocks, 22 gained, with Vedanta staying on top. Tata Motors, Coal India and ICICI Bank advanced.

Except IT, all BSE sectoral indices added to the gains led by realty, banking, metal, oil and gas and PSU.

Mid-cap and small-cap indices got on to a positive trajectory, rising up to 1.99 per cent.

Most Asian markets closed mixed, with China’s Shanghai Composite sliding 7.63 per cent. European equities were ruling higher in their opening trade.

Meanwhile, foreign portfolio investors (FPIs) net sold shares worth Rs 5,275.40 crore yesterday, provisional data showed.

HDFC lost heavily, down 1.82 per cent. Maruti, Infosys, L&T and TCS all lost.

The market breadth remained shaky as 1506 shares declined against 1,214 shares that advanced while 108 remained unchanged.

The total turnover rose to Rs 4,804.66 crore, from Rs 4,386.38 crore yesterday.

“As the global currency volatility stabilises soon, led by a purposeful intervention, FIIs will come back to the Indian market as we are the best among the EMs. The market will continue to be volatile and this panic provides a good opportunity to start fishing for good quality stocks,” said Vinod Nair, Head, Fundamental Research, Geojit BNP Paribas Financial Services.