On Monday, the Sensex rebounded from a two-day losing streak, closing 126 points higher. This was supported by buying in index heavyweights such as Reliance Industries, Maruti, and SBI, along with a higher opening in European equities. However, traders noted that investors remained cautious due to stress in the US and European financial systems. The 30-share BSE Sensex finished at 57,653.86, climbing 126.76 points or 0.22 per cent, with a high of 58,019.55 and a low of 57,415.02. The broader NSE Nifty also advanced, ending at 16,985.70, up by 40.65 points or 0.24 per cent, with 27 of its scrips ending in the green.
According to Siddhartha Khemka, head (retail research), Motilal Oswal Financial Services Ltd., “Nifty opened positive and remained steady for most of the session as SVB’s resolution provided some relief to the market. Investors took comfort from the news that First Citizens Bank shares will acquire SVB’s deposits and loans.” However, selling in the last half an hour led to the flat closing of the market at 16,986 (+0.2 per cent).
Deepak Jasani, head (retail research), HDFC Securities, noted that most Asian stocks struggled on Monday amid renewed concerns over more defaults in US and European banks, with Chinese markets falling the most as weak results pulled oil and gas shares lower. European shares were higher after First Citizens Bank shares soothed fragile markets on Monday by saying that it would take the deposits and loans of failed Silicon Valley Bank.
Foreign Portfolio Investors (FPIs) offloaded equities worth Rs1,720.44 crore on Friday, according to exchange data. A strengthening rupee bolstered sentiment, even as relentless foreign capital outflows restricted the gains, according to traders. In the broader market, the BSE smallcap gauge ended 1.50 per cent lower, while the midcap index dipped 0.37 per cent. Among sectoral indices, healthcare, FMCG, bankex, metal, and teck were the gainers. However, power, utilities, industrials, auto, realty, and services were the major laggards. The utility index fell by 2.48 per cent and power declined by 2.13 per cent.
