Sensex, Nifty stage strong comeback amid easing inflation

PTI Mumbai: Benchmark stock indices Sensex and Nifty rebounded sharply by about 1% on Friday, propelled by bargain hunting in telecommunication, tech, and consumer durable stocks amid encouraging domestic inflation data. After falling 1,207.14 points in morning trade, the 30-share BSE benchmark Sensex recovered all the lost ground later and jumped 843.16 points or 1.04% to settle at 82,133.12. During the day, it surged 923.96 points or 1.13% to 82,213.92. The NSE Nifty climbed 219.60 points or 0.89% to settle at 24,768.30 after falling 367.9 points in intraday trade.

On the weekly front, the BSE benchmark jumped 623.07 points or 0.76 per cent, and the Nifty climbed 90.5 points or 0.36 per cent. "The domestic market smartly recovered f rom the day's low and moved out of the consolidation path led by index heavyweights. A gradual easing in food inflation and a price hike by FMCG companies, along with a recent correction in valuation, supported the sector to outperform. Currently, the market is anticipating a revival in consumer spending, driven by the festive season and yearend holidays, adding to the sentiments. "Additionally, the expectation of an increase in US spending is propelling the IT sector," Vinod Nair, Head of Research, Geojit Financial Services, said.

Among the 30-share Sensex blue-chip pack, Bharti Airtel, ITC, Kotak Mahindra Bank, Hindustan Unilever, Titan, Ultra- Tech Cement, HCL Technologies, and Power Grid were the biggest gainers. On the other hand, Tata Steel, IndusInd Bank, JSW Steel, and Bajaj Finserv were the laggards. Contrary to the overall market trend, the BSE smallcap gauge declined 0.29%, and the midcap index dipped 0.08 per cent.

"Markets quickly bounced back from its weak opening and surged ahead in intra-day trade as moderating inflation enthused investors to resort to value buying in banking, IT, and telecom stocks," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.