Stock markets rebound on positive trend in Asian, European equities, buying in Reliance

L&T, ITC, Sun Pharma, Maruti, RIL, Axis Bank, IndusInd Bank were among gainers

Aided by news that the COVID-19 infections were peaking in some of the worst affected areas around the world, the Indian markets in sync with the global markets witnessed a relief rally | PTI

Benchmark equity indices Sensex and Nifty rebounded from early lows to settle higher on Wednesday following buying in Reliance Industries, Larsen & Toubro and ITC and positive trends in Asian and European markets.

The 30-share BSE Sensex rose by 173.22 points or 0.26 per cent to settle at 66,118.69. The index opened lower and fell further to a low of 65,549.96 in morning trade. However, buying in Reliance, L&T, Infosys and Maruti helped it recover losses. Later it jumped 226.8 points or 0.34 per cent to a high of 66,172.27.

The Nifty gained 51.75 points or 0.26 per cent to end at 19,716.45. It moved between a low of 19,554 and a high of 19,730.70 in day trading.

Among the Sensex firms, Larsen & Toubro, ITC, Sun Pharma, Maruti, Reliance Industries, Axis Bank, IndusInd Bank and Hindustan Unilever were among the gainers.

Titan, State Bank of India, ICICI Bank, HDFC Bank, Tata Steel and Nestle were the major laggards.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended in the green. European markets were trading mostly in positive territory. The US markets ended lower on Tuesday.

Global oil benchmark Brent crude climbed 0.98 per cent to $94.88 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 693.47 crore on Tuesday, according to exchange data.

"The market inched higher in the second half, driven by positive openings in European markets. Concerns about global interest rates and elevated oil prices are being balanced by several domestic factors, such as promising economic growth prospects and the potential for strong earnings, which validate the premium valuation," said Vinod Nair, Head of Research at Geojit Financial Services.

Persistent outflows of foreign funds and rising US bond yields are expected to keep the broader indices in bleak terrain, in the near term, Nair added.

The BSE benchmark fell 78.22 points or 0.12 per cent to settle at 65,945.47 on Tuesday. The broader Nifty dipped 9.85 points or 0.05 per cent to end at 19,664.70.

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