Markets rebound in early trade after sharp drubbing in previous session

Mumbai : Stock market benchmarks bounced back during morning trading on Tuesday, following a significant drop in the previous session, due to increased purchasing of IT stocks and a resurgence in Japanese markets. In the early trading session, the BSE Sensex rose by 348.1 points to reach 84,647.88. The NSE Nifty rose by 96.75 points to reach 25,907.60.

Tech Mahindra, Larsen & Toubro, State Bank of India, Bajaj Finserv, Infosys, and Power Grid were among the top performers from the 30 companies listed on the Sensex. Asian Paints, JSW Steel, Tata Steel, and Titan were some of the underperformers. Tokyo saw an increase in trading in Asian markets. The markets in South Korea, Hong Kong, and mainland China will be closed on Tuesday for a public holiday. Mainland China will remain shut for the remainder of the week because of the holiday.

Monday saw the US markets closing in a positive zone. According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 9,791.93 crore on Monday, while Domestic Institutional Investors (DIIs) purchased equities worth Rs 6,645.80 crore. "The selling by FII is expected to be counteracted by the buying from DII, so it is not likely to cause significant long-term harm to the market," commented V K Vijayakumar, the Chief Investment Strategist at Geojit Financial Services. Vijayakumar noted the sharp change in stock markets with an 8 per cent rise in the Shanghai Composite index and a 4.8 per cent drop in the Nikkei index yesterday. He stated that this high level of instability will probably calm down in the near future.

Brent crude, the global oil benchmark, dropped by 0.29 percent to USD 71.77 per barrel. On Monday, the BSE index fell by 1,272.07 points, which was a decrease of 1.49 percent, closing at 84,299.78. Throughout the day, it dropped by 1,314.71 points, equivalent to 1.53 percent, ending at 84,257.14. The Nifty plunged by 368.10 points, a decrease of 1.41 per cent, to reach 25,810.85.