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What a recovery! Sensex bounces over 1,000 points from day’s lows – Mint

After going into a free fall today in early trade, Indian markets bounced back strongly. The Sensex fell as much as 880 points to 59,104 at day’s low before staging a big recovery. In recent trade, Sensex was up about 100 points to 60,089. The broader Nifty also traded in a wide range of 17,904 to 17,613.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments, said Nifty took support at 17,600 before rebounding.  

“On the flip side if we break 17600 on a closing basis, the Nifty can slide further towards 17200,” he said. 

Sentiment was also lifted after the Railways Ministry decided to withdraw its decision asking its catering and tourism arm IRCTC to share half of all the convenience fee revenue it earns. IRCTC shares were down 2% after falling 25% at day’s low.

The Sensex had plunged over 1100 points on Thursday amid a string of lacklustre earnings and cautious sentiment overseas. This comes after foreign brokerages like Morgan Stanley, Nomura and UBS downgrading India on excessive valuations. 

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, however says that investors should “wait and watch the trend before taking decisions.”

“When smart money selling turns aggressive, retail exuberance would be overwhelmed. This is happening now. Investors need not rush in to buy now; the ‘buy on dips’ strategy, which worked well since April last year, may not work when FIIs are selling massively. However, switching from expensive stocks in the broader market to high quality large-cap growth stocks may be a good idea,” he said. 

Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth 3,818.51 crore, as per exchange data. They have been selling aggressively in Indian markets over the past one week. 

At the interbank foreign exchange, the rupee opened strong at 74.78 against the dollar and inched further to 74.77 in early deals, a rise of 15 paise over its previous close.

Asian markets struggled today despite another record performance on Wall Street as disappointing earnings from tech titans Apple and Amazon took some of the wind out of the sails for investors following a string of positive reports. (With Agency Inputs)


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