Stock market rebound: Sensex, Nifty gain in early trade; HCLTech down 9%
Benchmark stock market indices broke their losing momentum to gain in early trade.
Led by a rally in metal, banking, and auto sector stocks on the back of inflation easing slightly for the month of December. Retail inflation eased to a 4-month low of 5.22% in December. The S&P BSE Sensex gained 408.52 points to 76,738.53, while the NSE Nifty50 110.05 points to 23,196.00 as of 9:30 AM.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the constant refrain from many saner voices that the broader market is overpriced and may correct sharply is now playing out.
“Reversion to mean valuations are happening in large caps, too. Strengthening dollar, 10-year US bond yields rising to above 4.7%, uncertainty regarding Trump’s actions after January 20th, slowdown in India’s economy and poor corporate earnings, sharp surge in crude have all combined to cause this market correction,” he added.
NTPC led the gainers on Nifty50 in early trade with a strong rise of 3.52%, followed by Tata Motors which climbed 3.29%. IndusInd Bank showed robust performance with a 3.14% increase, while Adani Ports and Special Economic Zone advanced 3.10%. Adani Enterprises rounded out the top gainers with a rise of 2.95%.
On the declining side, HCL Technologies faced significant pressure, dropping 8.67%, marking it as the day’s biggest loser. Tech Mahindra fell by 1.54%, while Wipro declined 1.20%. Infosys slipped 1.01%, and Hindustan Unilever ended lower by 0.80%.
“The sensible option for retail investors is to buy beaten down quality largecaps and wait patiently,” said Vijayakumar.
Most sectoral indices started the day in positive territory, with only two sectors in red. Nifty IT declined by 1.86%, and Nifty FMCG fell 0.53%.
All other sectoral indices saw gains in early trade. Nifty Metal led the gains with a rise of 2.93%, followed by Nifty Media which climbed 2.11%.
Nifty Auto showed strong performance, gaining 1.75%, while Nifty Oil & Gas advanced 1.37%. The financial sector demonstrated broad strength, with Nifty Financial Services Ex-Bank rising 1.56%, Nifty Financial Services up 1.12%, and Nifty Bank gaining 1.29%.
Nifty PSU Bank posted a notable increase of 2.57%, while Nifty Private Bank rose 1.09%. Nifty Midsmall Services gained 1.86%, and Nifty Realty moved up by 0.91%. Healthcare-related indices showed modest gains with Nifty Midsmall Healthcare up 0.86% and Nifty Healthcare Index rising 0.57%. Nifty Midsmall IT & Telecom gained 0.64%, while Nifty Consumer Durables added 0.60%.