Markets rebound after sharp fall on buying by domestic investors, firm Asian peers

A man walks past the new logo of the Bombay Stock Exchange (BSE) building in Mumbai. BSE Sensex and NSE Nifty rise in early trade. File
| Photo Credit: Reuters

Stock market benchmark indices rebounded in early trade on Wednesday (October 23, 2024) amid continuous buying by domestic institutional investors and firm trends across Asian bourses.

The BSE Sensex climbed 168.79 points to 80,389.51 in early trade. The NSE Nifty went up by 46.2 points to 24,518.30.

From the 30 Sensex pack, Bajaj Finance climbed over 3% after the firm reported a 13% increase in consolidated net profit at ₹4,014 crore in the second quarter ended September 2024.

Bajaj Finserv, HDFC Bank, Nestle, Kotak Mahindra Bank, Tata Consultancy Services, and Maruti were among the other big gainers.

NTPC, Power Grid, Mahindra & Mahindra, and UltraTech Cement were among the laggards.

Domestic Institutional Investors (DIIs) bought equities worth ₹5,869.06 crore on Tuesday (October 23, 2024), according to exchange data. Foreign Institutional Investors (FIIs), however, offloaded shares worth ₹3,978.61 crore.

In Asian markets, Seoul, Shanghai and Hong Kong traded higher while Tokyo quoted lower.

The U.S. markets ended flat on Tuesday (Oct. 23, 2024).

“The ongoing trend of largecaps outperforming mid and smallcaps is likely to sustain, going forward. FII selling and the countervailing trend of DII buying is likely to continue. This will impart strength to largecap financials, particularly banking stocks like HDFC, ICICI, Axis and Kotak which are fairly valued in this market with elevated valuations,” said V.K. Vijayakumar, chief investment strategist, Geojit Financial Services.

Global oil benchmark Brent crude declined 0.21% to $75.88 a barrel.

The BSE benchmark plummeted 930.55 points or 1.15% to settle at 80,220.72 on Tuesday (Oct. 23, 2024). The NSE Nifty tumbled 309 points or 1.25% to 24,472.10.