Smart recovery on D-Street! Sensex bounces back over 900 pts from day's low, Nifty50 crosses 17,700

The Sensex bounced back more than 900 points from its weakest level of the day as Dalal Street staged a smart recovery within the first few minutes of trade.

Indian equity benchmarks staged a fantastic recovery within the first 30 minutes of trade on Monday, with the Sensex bouncing back more than 900 points from the weakest level of the day and the Nifty50 surpassing the 17,700 mark. The Sensex rebounded 937.4 points from initial weakness in the market to as high as 59,644.2, escaping clear of three-month lows hit on Friday, having slumped to as low as 58,706.9 in intraday so far. The Nifty50 climbed to as high as 17,709.2 after dropping to as low as 17,446.3 during the session.

At 10 am, both headline indices held on to a 0.2 per cent gain, with the 30-scrip index up 117.8 points from its previous close to trade at 59,448.7, and the Nifty50 up 34.4 points at 17,638.8.

Twenty six stocks in the Nifty50 basket moved higher, with Adani Enterprises and Adani Ports being the top gainers, up seven per cent and 4.9 per cent respectively.

Bajaj Finance, Bajaj Finserv, Sun Pharma, NTPC, UltraTech, ITC and Coal India — trading between 1-4 per cent higher — were among the other top blue-chip gainers.

On the other hand, PowerGrid, Hindustan Unilever, SBI Life, JSW Steel, IndusInd Bank, Hindalco, Bajaj Auto, ONGC and Tata Steel — down between 1.3 per cent and 2.6 per cent — were the top Nifty50 laggards.

Among heavyweights, the Bajaj twins, Infosys and ITC were the biggest contributors to the market recovery.

Anil Singhvi's view

Zee Business Managing Editor Anil Singhvi expects support for the Nifty50 benchmark to come in at 17,425-17,475 levels on Monday followed buy strong support in the 17,300-17,350 area. (Read more on how Anil Singhvi views the market today)

Adani group stocks remained in focus on Dalal Street. Adani Transmission was down 19.9 per cent and Adani Green down 15.4 per cent. Adani Total was locked in the 20 per cent lower circuit, while Adani Power and Adani Wilmar were each frozen in the five per cent circuit.

ALSO READ: Adani Group responds to Hindenburg

"Today, the market will be completely dominated by movement in Adani stocks. The statement from Adani Enterprises that the FPO is on schedule and that there is no change in the price band is very important. This can be interpreted as a reflection of the confidence of the management in the success of the FPO," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The "correction in high quality private sector banks is a buying opportunity," he said.

Investors awaited more of quarterly corporate earnings reports from India Inc for domestic cues, with Tech Mahindra, Bharat Petroleum, Coal India and Punjab National Bank (PNB) slarted to release their numbers later in the day.

Overall market breadth remained in favour of the bulls in morning deals, with an advance-decline ratio of 3:2 as 1,803 stocks rose and 1,220 fell on BSE.

Global markets

Equities in other Asian markets largely held on to the green, after a strong handover from Wall Street on Friday, with MSCI's broadest index of Asia Pacific shares outside Japan rising 0.3 per cent at the last count. Japan's Nikkei 225 was up 0.3 per cent and China's Shanghai Composite up 0.8 per cent, but Hong Kong's Hang Seng down 0.8 per cent.

S&P 500 futures were down 0.2 per cent, indicating a weak start ahead on Wall Street. On Friday, the S&P 500 finished 0.3 per cent higher, the Dow Jones rose 0.1 per cent and the tech stocks-heavy Nasdaq Composite gained one per cent.

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