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Sensex Up, Up and Up, logs third biggest single-day gain of this year | Mint – Mint

Indian stock markets today erased Monday’s losses when benchmark indices Sensex and Nifty surged 2.5%, driven by broad-based gains, as investors used recent dips to enter the markets. The Sensex ended with gains over over 1,500 points at 59,537 – the third biggest percentage gain of this year – while Nifty settled above 17,650 levels. Today the Sensex started the day about 350 points higher and buying interests intensified in the afternoon session. Indian stock markets had a sharp drop on Monday. The Sensex had lost 861.25 points or 1.46%.

“The downsides lost momentum on tests of the 17160 region triggering upside attempts on anticipated lines.The sharp pullback we have seen from 18,000 levels has encouraged people to be more risk-on. But some factors, like the quantum of the U.S. Federal Reserve rate hike going forward, is still on evolving stage,” Anand James, chief market strategist at Geojit Financial.

All the 30 stocks in the Sensex pack remained in green. Bajaj Finserv, IndusInd Bank, Bajaj Finance and IndusInd Bank were up between 3.5% and 5%. The index heavyweight Reliance Industries Limited was trading 1.2% higher.

Global markets also stabilized today after the selloff sparked by Fed chief comments on Friday where he signalled a sustained period of restrictive monetary policy to quell inflation.

European stocks and US futures were today, supported by a dip in US Treasury yields and the dollar.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Compared to the sell-off in US markets last Friday, the correction in the Indian market yesterday was relatively mild. This is a reflection of the resilience of the Indian market.”

“However, it is important to appreciate the fact that valuations in India are high. Nifty is trading around 20 times forward earnings. MSCI India is trading at 100% premium to emerging market rivals. This calls for some caution. There is a possibility of further correction in the market in the near-term. Financials, capital goods, autos, telecom and FMCG are strong segments attracting investment.”

The broader markets also remained strong with BSE midcap and smallcap indices rising 1.4% and 1.7% respectively.

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