Sensex, Nifty rebound nearly 1 pc as auto, IT shares advance

Benchmark equity indices Sensex and Nifty on rebounded on Thursday to close higher by nearly 1 per cent on gains in auto, IT and banking shares, shrugging off US recession woes and mixed global trends.The 30-share BSE Sensex rose by 443.19 points or 0.86 per cent to settle at 52,265.72 with 27 of its scrips ending in green.

Benchmark equity indices Sensex and Nifty rebounded on Thursday to close higher by nearly 1 percent on gains in auto, IT, and banking shares, shrugging off US recession woes and mixed global trends.

The 30-share BSE Sensex rose by 443.19 points or 0.86 percent to settle at 52,265.72 with 27 of its scrips ending in the green. During the day, it rallied 694.26 points or 1.33 percent to 52,516.79.

The NSE Nifty advanced 143.35 points or 0.93 percent to 15,556.65 points as 45 of its constituents ended with gains.

''Weak global markets and recession woes following Fed Chair's testimony failed to discourage Indian bourses. The domestic market is showcasing potency to sustain the momentum in the short to medium-term,'' said Vinod Nair, Head of Research at Geojit Financial Services.

However, FIIs are continuing their selling, limiting the trend, Nair added.

During the afternoon session, markets trimmed some of their gains as European markets struggled to shrug-off recession fears, but local stock indices managed to end in the green, said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers.

Maruti was the biggest gainer among Sensex stocks, spurting by 6.33 percent. M&M jumped 4.41 percent, Asian Paints by 3.39 percent, Bharti Airtel by 2.96 percent, and HUL by 1.94 percent.

Among IT stocks, TCS rose by 2.7 percent, Wipro by 1.97 percent, Tech Mahindra by 1.11 percent, and Infosys by 1.1 percent.

ICICI Bank gained 1.86 percent, IndusInd Bank by 1.2 percent, and Kotak Bank by 0.95 percent.

On the other hand, Reliance fell the most by 1.62 percent among Sensex shares. NTPC dropped 0.94 percent and Power Grid by 0.9 percent.

''Advancement of the southwest monsoon beyond the Eastern parts of the country coupled with a cool off in Oil buoyed Auto stocks today as they led the charge on the Benchmark Indices with good support from the IT stocks,'' S Ranganathan, Head of Research at LKP securities said.

Ajit Mishra, VP - Research, Religare Broking Ltd, said that the trend across global markets was mixed after the Fed chairman suggested an increase in interest rates in the coming time to fight inflation.

The US Federal Reserve chairman Jerome Powell said a recession is possible as the US central bank raises interest rates to cool surging inflation. Investors are fearing that US and European rate hikes may derail global growth.

In the broader domestic market, the BSE midcap gauge jumped 1.40 percent, and smallcap index went up by 1.18 percent.

Among the BSE sectoral indices, auto jumped the most by 4.42 percent, followed by consumer discretionary goods & services (2.40 percent), Information Technology (1.87 percent), teck (1.85 percent), and telecom (1.81 percent). Energy and oil & gas indices ended lower.

As many as 2,096 stocks advanced, while 1,208 declined and 130 remained unchanged.

Elsewhere in Asia, stock markets in Hong Kong, Shanghai, and Tokyo ended with gains while Seoul settled lower. European markets were trading in the red in mid-session deals.

The US markets ended marginally lower on Wednesday.

The 30-share BSE Sensex tanked 709.54 points or 1.35 percent to settle at 51,822.53 on Wednesday. The NSE Nifty fell 225.50 points or 1.44 percent to end at 15,413.30.

Meanwhile, international oil benchmark Brent crude declined 1.92 percent to USD 109.60 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 2,920.61 crore on Wednesday, as per exchange data.