Nifty, Sensex Rebound As HDFC Bank, RIL, Kotak Mahindra Lead: Market Wrap

The benchmark indices plunged in early trade before paring losses to close higher on Thursday as HDFC Bank Ltd., Reliance Industries Ltd. and Kotak Mahindra Bank Ltd. led the gains.

The NSE Nifty 50 settled 105 points or 0.50%, higher at 21,255.05, while the S&P BSE Sensex was 359 points or 0.51%, up at 70,865.10. Earlier in the day, the indices posted its worst opening in two months. 

"We are of the view that as long as the market is trading above 21,180/70,600, the pullback formation is likely to continue," Shrikant Chouhan, head of equity research at Kotak Securities Ltd., said. "The current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders."

Markets witnessed a rollercoaster ride as key indices plunged in early trades only to recoup their lost ground and end sharply higher, according to Prashanth Tapse, senior vice president of research at Mehta Equities Ltd.

"Earlier, weak European and Asian indices weighed on the sentiment, but India's strong growth-story prospects give investors the comfort to place long-term bullish bets," Tapse said.

HDFC Bank, RIL, Kotak Mahindra Bank, State Bank of India, and Power Grid Corp. contributed the most to the gains. 

Axis Bank Ltd., Bajaj Finance Ltd., HCL Technologies Ltd., ICICI Bank Ltd., and Bajaj Auto Ltd. weighed on the indices.

All 14 sectors on the NSE advanced, with Nifty Media rising 2.49% to be the top gainer.

The broader markets outperformed the benchmark indices, as BSE MidCap rose 1.61% and SmallCap advanced 1.69%.

Nineteen out of the 20 sectors compiled by the BSE advanced, with utilities and power rising the most. BSE Auto declined.

The market breadth was skewed in favour of the buyers. As many as 2,659 stocks rose, 1,114 declined and 123 remained unchanged on the BSE.