Markets rebound amid global recovery; Sensex jumps over 190 points in early trade

Equity benchmark indices rebounded on Wednesday, with the Sensex jumping over 190 points in early trade, tracking recovery in global markets.

The 30-share BSE Sensex was trading 190.34 points higher at 54,555.19. The NSE Nifty jumped 65.55 points to 16,305.60 in early deals.

Among the Sensex firms, Bharti Airtel, Tech Mahindra, Power Grid, Tata Steel, HDFC and M&M were the prominent gainers in early trade.

In contrast, Asian Paints, Hindustan Unilever, Larsen & Toubro and IndusInd Bank were among the laggards.

Elsewhere in Asia, markets in Tokyo, Hong Kong, Shanghai and Seoul were trading in the green.

Stock exchanges in the US had ended mostly higher on Tuesday.

“Major US stock benchmarks ended mixed on Tuesday, with the Dow Jones Industrial Average booking a fourth straight day of losses, on the eve of key inflation reading. The S&P 500 and Nasdaq ended higher on Tuesday,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

Meanwhile, international oil benchmark Brent crude gained 1.64 per cent to 104.14 per barrel.

Foreign institutional investors continued to offload shares worth Rs 3,960.59 crore on Tuesday, according to stock exchange data.

The BSE benchmark settled 105.82 points or 0.19 per cent lower at 54,364.85 on Tuesday. The Nifty declined 61.80 points or 0.38 per cent to end at 16,240.05.

Mohit Nigam, Head – PMS, Hem Securities, said, market direction is very erratic and tough to predict.

“Indian markets are extremely volatile as a result of FII selling, rate hikes by the US Fed and RBI, growing inflation, and continuous geopolitical tensions between Russia and Ukraine. Positive geopolitical developments, as well as stronger-than-expected critical macroeconomic data, may assist to change the tide and entice investors to return to equities market,” he added.