Sensex rebounds over 500 points, Nifty regains 11,000: 10 updates1 min read . Updated: 06 Aug 2019, 03:03 PM IST
- ICICI Bank, Axis Bank and Kotak Bank led gains today
- BSE midcap and smallcap indices also posted strong gains
Indian markets rebounded today with banking stocks leading the rally. The Sensex was up over 400 points while broader Nifty regained 11,000 levels. Investors awaited the Reserve Bank of India's monetary policy decision scheduled tomorrow. Broader markets also showed strong traction. Credit Suisse AG upgraded Indian markets to overweight amid an escalating US-China trade war, Bloomberg reported.
Here are 10 updates from Indian stock markets:
1) Finance minister Nirmala Sitharaman on Monday said her department would hold talks with foreign portfolio investors (FPIs) about the tax surcharge on certain high-value investments.
2) "People are expecting the RBI to cut rates and the finance minister's statements about FPIs are also giving hope," said Neeraj Dewan, a director at Quantum Securities.
3) Rusmik Oza, head of fundamental at Kotak Securities, expects Nifty to trade between 10,600 and 11,150 for now. "If 10,600 breaks, we head for 10,000 and if 11,150 breaks we head for 11,668," he said.
4) He suggests accumulation over the next 3-4 months "as any material recovery in the economy could only happen from Q3-FY20 onwards. The base effect will also start playing out positively in many sectors from Q3-FY20 onwards."
5) Among the Sensex stocks, Tech Mahindra, Yes Bank, Bharti Airtel, L&T and Bajaj Finance were up between 3% and 4%. ICICI Bank, Axis Bank and Kotak Bank gained over 2% each. Maruti Suzuki, Asian Paints, NTPC, IndusInd Bank were among the other top gainers. Among losers, RIL, TCS and PowerGrid were down between 0.5% and 1%.
6) Elsewhere, DHFL shares surged 28% today. The housing finance company today said its proposed resolution plan seeks moratorium on repayments but lenders will have to take no haircuts on the principal amount of their loans.
7) Broader markets also showed strong gains. The BSE midcap index was up 1.5% while smallcap index rose 1.7%
8) Volatility index India VIX, which is also know as fear gauge, slipped 5% today.
9) Global markets were weak today, after Washington tagged China a currency manipulator, shaking fragile investor sentiment in a rapid escalation of the U.S.-China trade war.
10) Safe-haven assets, including bonds, gold and some currencies such as the yen and Swiss franc, benefited as investors scurried to avoid risk.