Sensex, Nifty rebound after weak start as IT stocks, HDFC Bank lead gains

New Delhi: Benchmark indices Sensex and Nifty recovered from early losses on Wednesday, supported by buying in IT stocks and HDFC Bank, extending the previous session's sharp rally.

The 30-share BSE Sensex initially slipped 32.96 points to 73,000.82, while the NSE Nifty declined 32.65 points to 22,688.75. However, both indices quickly reversed course, with the Sensex gaining 161.48 points to 73,195.26 and the Nifty rising 36 points to 22,757.95.

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Tata Consultancy Services, HCLTech, Infosys, Tech Mahindra, HDFC Bank, Kotak Mahindra Bank, UltraTech Cement and Maruti were among the major gainers.

Sun Pharma, Bajaj Finance, Bajaj Finserv, Larsen & Toubro, Power Grid and Eternal were among the laggards.

Meanwhile, Brent crude climbed 0.62 percent to USD 106.4 per barrel, adding to concerns over elevated energy prices. Foreign Institutional Investors (FIIs) sold equities worth Rs 1,305.13 crore on Tuesday, according to exchange data.

Asian markets traded higher, with gains in South Korea's Kospi, Japan's Nikkei 225, China's Shanghai Composite and Hong Kong's Hang Seng. US markets had closed lower overnight.

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The recovery followed Tuesday's strong rally, when the Sensex surged 1,109.10 points, or 1.54 percent, to 73,033.78, recording its biggest single-day gain in four months. The Nifty jumped 358.60 points, or 1.60 percent, to 22,721.95, marking its strongest daily rebound in over two months.

Despite the recovery, elevated crude prices and continued foreign investor selling remain key risks to sustaining the market's upward momentum.

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