Stock market update: Nifty, Sensex rebound as bank stocks gain in early trade

Banking and financial stock led the recovery run on Wednesday morning, helping the Indian stock markets gain some ground after closing in the red on Tuesday. Asian markets trading in the green helped matters.

BSE Bankex and NSE Nifty Bank indices soared by around 0.65 per cent each, both inching closer to their 52-week highs. HDFC Bank led the gainers in the banking benchmarks, as financial stocks led the morning recovery ride in the Indian markets.

The 30-pack Sensex jumped at least 0.85 per cent while the Nifty gained around 0.85 per cent in the first two hours of trading on Wednesday.

Mahindra, Sun Pharma, Ultratech, and Nestle were significant gainers of the Sensex that added on the financial stock gains by HDFC Bank, Bajaj Finserv, Bajaj Finance, and SBI. Only IndusInd Bank and Kotak Mahindra Bank traded in the red, among finance stocks.

In the morning, Kospi (South Korea), SSE Composite (Mainland China), and Hang Seng (Hong Kong) traded in the green. Nikkei, however, skipped, adding to the downward trend of the US markets when it closed on Tuesday.

Tuesday saw the Indian stock market shave off early gains and tumble more than 1 per cent as FIIs offloaded ₹10,016.10 crore worth of equities on the same day.

The rupee continued its slide on Wednesday morning, depreciating by 9 paise to 85.67 vs the dollar. On Tuesday, the Indian currency lost 16 paise of its value to settle at 85.58 against the greenback.

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