Benchmark stock market indices surged sharply in early trade, breaking a week-long losing streak and providing much-needed relief to investors.
The S&P BSE Sensex climbed 802.66 points to 78,844.25 by 11:06 am, while the NSE Nifty50 advanced 243 points to trade at 23,828.60.
Broader market indices also rebounded as market volatility eased significantly during the session.
HEAVYWEIGHT STOCKS GAIN
Heavyweight banking, financial services, and IT stocks played a significant role in driving today’s rally. Metal and realty stocks also performed well, adding to the momentum.
Leading contributors included Reliance Industries Limited and HDFC Bank, with gains of up to 1.7%. Stocks such as JSW Steel, ITC, Tech Mahindra, and Wipro also posted notable gains, further supporting the market’s recovery.
Analysts at Emkay Global raised HDFC Bank’s target price to Rs 2,100 from Rs 2,000, citing the bank’s attractive valuations and robust asset quality, which is expected to outperform peers. The positive outlook for HDFC Bank provided additional confidence to investors.
METAL STOCKS JUMP
Metal stocks rose 1.3% after the Directorate General of Trade Remedies initiated a safeguard probe into imports of non-alloy and alloy steel flat products. Investec highlighted that domestic steelmakers, particularly Tata Steel and JSW Steel, could benefit from the potential imposition of safeguard duties. Tata Steel gained 1.7%, while JSW Steel surged 3%.
STRONG GLOBAL CUES
Global cues also supported the rally, with Asian markets climbing after data showed US inflation remained subdued. The MSCI Asia ex-Japan index rose 1.3%, buoyed by expectations of a less aggressive stance by the US Federal Reserve.
Despite today’s gains, market experts caution against over-optimism. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, added that foreign institutional investors (FIIs) sold Rs 15,826 crore last week due to India’s economic slowdown and better returns in US markets.
While rebounds like today’s offer temporary relief, experts believe a sustained rally will depend on clear signs of economic growth revival, which may only emerge in early 2025.
