Stock markets rebound after two days of fall amid global rally

Bombay Stock Exchange on Dalal Street. File
| Photo Credit: Vivek Bendre

Benchmark equity indices Sensex and Nifty rebounded nearly 1% on Thursday after a two-day decline, following a rally in global markets amid the U.S. Federal Reserve keeping rates unchanged.

The 30-share BSE Sensex jumped 489.57 points or 0.77% to settle at 64,080.90. During the day, it rallied 611.31 points or 0.96% to 64,202.64.

The Nifty climbed 144.10 points or 0.76% to 19,133.25.

Among the Sensex firms, IndusInd Bank, Tata Steel, Tata Motors, Sun Pharma, Infosys, Mahindra & Mahindra, Infosys, NTPC, Bharti Airtel, HCL Technologies and Axis Bank were the biggest gainers.

Tech Mahindra and Bajaj Finance were the laggards.

“A pause with dovish commentary from the Fed led to a rebound in the global and domestic market sentiment. Further, the fall in U.S. bond yields indicates a prolonged pause in interest rate hikes,” Vinod Nair, Head of Research at Geojit Financial Services said.

“Domestic macros are favourable with positive auto numbers, a surge in GST collection, good factory data and better than estimated Q2 quarter earnings,” Mr. Nair added.

In Asian markets, Seoul, Tokyo and Hong Kong ended in the green while Shanghai settled lower. European markets were trading in positive territory. The U.S. markets ended with gains on Wednesday.

Global oil benchmark Brent crude jumped 1.67% to $86.12 a barrel.

Foreign institutional investors (FIIs) offloaded equities worth ₹1,816.91 crore on Wednesday, according to exchange data.

The BSE benchmark declined 283.60 points or 0.44% to settle at 63,591.33 on Wednesday. The Nifty went down by 90.45 points or 0.47 to 18,989.15.