Markets rebound in early trade after 5-day slump

New Delhi: Equity benchmark indices Sensex and Nifty rebounded in early trade on Tuesday amid value buying at lower levels after falling sharply in the last five trading sessions.

The 30-share BSE benchmark Sensex climbed 117.57 points to 74,571.98 in early trade. The NSE Nifty went up 31.3 points to 22,584.65.

Later, the BSE benchmark quoted 272.39 points higher at 74,725.89, and the Nifty traded 47.45 points up at 22,600.80.

From the Sensex pack, Mahindra & Mahindra, Zomato, Adani Ports, Bajaj Finserv, Bajaj Finance, and Bharti Airtel were the biggest gainers.

In the last five trading sessions, the BSE barometer lost 1,542.45 points, or 2 percent, and the Nifty tanked 406.15 points, or 1.76 percent.

"The market is oversold, largecap valuations are fair and short positions in the market are high. This warrants a bounce back, particularly if a short covering happens. But the real issue is the relentless FII selling in the cash market," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

It is the sustained DIIs (Domestic Institutional Investors) buying that is preventing the market from a capitulation, he said.

Foreign institutional investors (FIIs) offloaded equities worth Rs 6,286.70 crore on Monday, while DIIs bought equities worth Rs 5,185.65 crore, according to exchange data.

"FIIs selling more than Rs 6,000 crore worth of Indian equities on Monday and offloading over Rs 1 lakh crore since the beginning of this year raises concern that how long domestic inflows would continue to offset overseas investor selling," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading lower.

The Sensex had tanked 856.65 points, or 1.14 percent, to settle at 74,454.41 on Monday while the Nifty declined 242.55 points, or 1.06 percent, to 22,553.35.

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