India News | Sensex Rebounds 514 Pts on Firm Global Cues; IT, Finance Stocks Spurt

Mumbai, Sep 21 (PTI) Equity indices clawed back lost ground on Tuesday, buoyed by a recovery in overseas markets as fears eased about the debt crisis at China's Evergrande group seeping into the global economy.

Investors scooped up IT, finance and metal stocks after the steep correction in the previous session, while a strengthening rupee also bolstered sentiment.

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After a choppy start, the 30-share BSE Sensex gained momentum in late-afternoon trade to close 514.34 points or 0.88 per cent higher at 59,005.27.

On similar lines, the broader NSE Nifty surged 165.10 points or 0.95 per cent to 17,562.

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Bajaj Finance topped the Sensex gainers' list with a jump of 4.94 per cent, followed by IndusInd Bank, ITC, Bajaj Finserv, Tata Steel, HCL Tech, Tech Mahindra and Infosys.

On the other hand, Maruti, Bajaj Auto, Nestle India, HDFC Bank, PowerGrid and Axis Bank closed with losses of up to 2.54 per cent.

"Domestic benchmark indices witnessed sharp recovery mainly led by brisk rebound in defensive sectors like IT, pharma and FMCG," said Binod Modi, Head - Strategy at Reliance Securities.

"Today's recovery in equities shows that markets have discounted possible fallout from likely default of Chinese real estate giant Evergrande, while Thursday would be crucial as USD 83 million interest payment is due for Evergrande on the day," he added.

Vinod Nair, Head of Research at Geojit Financial Services, said, "Domestic indices staggered during the early trading session however positive trends in the global markets comforted Indian equities to rebound during the second half."

"Global stocks recovered from the fears sparked by troubles in the Chinese economy, ahead of the FOMC meeting that will start later in the day. All major sectors traded in the green zone while the auto sector remained under pressure due to rising input costs and the semiconductor shortage faced by the global auto industry," he added.

Sectorally, BSE realty, metal, teck, IT and basic material indices rallied as much as 2.93 per cent, while utilities, power, auto and bankex were in the red.

Broader BSE midcap and smallcap indices rose up to 0.79 per cent.

Elsewhere in Asia, Hang Seng ended on a positive note, while Nikkei was in the red. Bourses in China and South Korea were closed for holidays.

Stock exchanges in Europe rallied over 1 per cent in afternoon trade.

Meanwhile, international oil benchmark Brent crude rose 0.96 per cent to USD 74.63 per barrel.

The rupee on Tuesday rebounded by 13 paise to close at 73.61 against the US dollar.

Foreign institutional investors were net buyers in the capital market on Monday as they purchased shares worth Rs 92.54 crore, as per exchange data.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)