Markets rebound in early trade amid firm trends at Wall Street

New Delhi: Equity benchmark indices rebounded in early trade on Monday following a rally in the US markets and heavy buying in Kotak Mahindra Bank.

The 30-share BSE Sensex climbed 328.54 points to 74,206.69 in early trade. The NSE Nifty advanced 93.45 points to 22,569.30.

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From the Sensex basket, Kotak Mahindra Bank jumped over 4 percent after the company reported a 25 percent growth in its March quarter net profit at Rs 5,302 crore, limited by a drop in the core income due to narrow interest margins.

Tata Consultancy Services, JSW Steel, IndusInd Bank, ICICI Bank, Wipro and Axis Bank were among the other major gainers.

Billionaire investor Warren Buffett said that the Indian market has "unexplored" opportunities which his conglomerate holding company, Berkshire Hathaway, would like to explore "in the future".

Buffett's remarks came at Berkshire's annual meeting on Friday when Rajeev Agarwal of DoorDarshi Advisors, a US-based hedge fund that invests in Indian equities, asked him about the possibility of Berkshire exploring in India, the world's fifth-largest economy.

"Positive comment by Warren Buffett that India is an untapped market with great potential is hugely important. FIIs can take a cue from that rather than react every time to changes in US bond yields," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The US jobs data for April has come lower-than-expected indicating a weakening labour market and slowing economy, Vijayakumar said.

"US unemployment has risen to 3.9 per cent in April. So the possibility of a rate cut by the Fed has again brightened. The decline in the dollar index to 105.8 and the cut in the 10-year US bond yield to 4.49 percent augur well for the market," he added.

Global oil benchmark Brent crude climbed 0.23 percent to USD 83.15 a barrel.

The BSE benchmark dropped 732.96 points or 0.98 percent to settle at 73,878.15 on Friday. The NSE Nifty also declined 172.35 points or 0.76 percent to 22,475.85.

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