Markets bounce back in early trade after 6 days of fall

Equity benchmark indices rebounded in early trade on October 27 after facing massive drubbing of late amid recovery in Asian markets.
| Photo Credit: Paul Noronha

Equity benchmark indices rebounded in early trade on October 27 after facing massive drubbing of late amid recovery in Asian markets.

The 30-share BSE Sensex jumped 411.17 points to 63,559.32 in early trade. The Nifty climbed 115.9 points to 18,973.15.

Among the Sensex firms, NTPC, Mahindra & Mahindra, State Bank of India, Infosys and Maruti were the major gainers.

Asian Paints emerged as the only laggard from the pack.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the positive territory.

The U.S. markets ended lower on October 26.

The European Central Bank left interest rates unchanged on October 26 for the first time in over a year.

“After six continuous days of losses triggered by the elevated bond yields in the U.S. and tensions in West Asia, the market appears to be oversold,” V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

He added that the US economy’s resilience is surprising.

“The Q3 GDP growth at 4.9% means the Fed will continue to be hawkish and the likely ‘higher for longer’ interest rate regime is negative from the stock market perspective,” Mr. Vijayakumar added.

On the positive side, valuations in India, which were high, have now turned fair, and in sectors like banking valuations are attractive, he said.

Global oil benchmark Brent crude jumped 1.25% to $89.03 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹7,702.53 crore on October 26, according to exchange data.

The BSE benchmark slumped 900.91 points or 1.41% to settle below the 64,000 mark at 63,148.15 on October 26. The Nifty dived 264.90 points or 1.39% to 18,857.25.