Mumbai, Oct 05: Market benchmark indices Sensex and Nifty rebounded in early trade on Monday, following a decline in crude oil prices and easing concerns over further Federal Reserve tightening at its October meeting.
The 30-share BSE Sensex jumped 413 points to 72,315 in early trade. The 50-share NSE Nifty climbed 131.55 points to 22,554.20.
Later in the trade, the BSE benchmark surged 705.70 points to 72,594.57, and the Nifty jumped 187.30 points to 22,605.10.
From the 30 Sensex firms, Bajaj Finance, ITC, Bajaj Finserv, Larsen & Toubro, Axis Bank and State Bank of India were among the winners.
Bharat Electronics, Sun Pharma, Infosys and Asian Paints were among the laggards.
“After eight weeks of declines the market appears set for a rebound in the near term. The better-than-expected results of Accenture and the appointment of Anup Bagchi as MD and CEO of HDFC Bank have the potential to lead to a turnaround in the market,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Anup Bagchi is set to be the next chief executive and managing director of HDFC Bank, with the Reserve Bank clearing his name to lead the largest private sector lender on Thursday.
Bagchi, who has been associated with rival ICICI Bank and its subsidiaries since 1992, will succeed Sashidhar Jagdishan, whose six-year stint in the corner office was marred by allegations of unethical conduct and questionable governance practices towards the end.
He will take over as the MD and CEO from October 27, and the appointment is for three years, as per an exchange disclosure by the lender.
Brent crude, the global oil benchmark, declined 0.70 per cent to USD 101.5 per barrel.
“Softer-than-expected US employment data has eased some immediate concerns over further Federal Reserve tightening at its October meeting, offering a degree of support to global risk appetite. However, elevated Treasury yields, persistent foreign selling and renewed geopolitical risks could limit the upside and keep investors guarded through the session,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.
In Asian markets, Japan’s Nikkei 225 index jumped over 2 per cent, while the Hang Seng index quoted marginally lower.
US markets ended higher on Friday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 9,484.22 crore on Thursday, according to exchange data.
On Thursday, the Sensex dropped 570.59 points, or 0.79 per cent, to settle at 71,909.70. The Nifty tumbled 198.50 points, or 0.88 per cent, to end at 22,421.95.
Equity markets were closed on Friday for Gandhi Jayanti. ( PTI )
