Stock Market Rebound As Sensex, Nifty Snap Three-Day Losing Streak; Details Here

Indian benchmark indices bounced back sharply on Wednesday, May 21, ending a three-session losing streak, buoyed by gains in auto, IT, and pharma stocks. The recovery was broad-based, although the broader markets underperformed the frontline indices in the latter half of the trading day.

At the close, the BSE Sensex surged 410.19 points, or 0.51 per cent, to settle at 81,596.63, while the NSE Nifty rose 129.55 points, or 0.52 per cent, ending the day at 24,813.45. Market breadth remained positive, with 2,214 stocks advancing, 1,615 declining, and 126 remaining unchanged on the BSE.

Sectorial Update

Sectoral indices on the NSE closed mostly in the green on Wednesday, with real estate stocks leading the charge. The Nifty Realty index was the top gainer, rising 1.51 per cent, followed by Nifty Pharma, which gained 1.10 per cent, and Nifty IT, up 0.70 per cent. The auto sector also saw healthy buying interest, with the Nifty Auto index adding 0.68 per cent.

Other sectors, including FMCG, infrastructure, energy, and PSU banks, posted moderate gains, while the Nifty Bank and Nifty Private Bank indices ended the session flat with slight positive bias. On the downside, consumer durables underperformed, with the index slipping 0.49 per cent, making it the worst sectoral performer of the day.

The India VIX, a measure of market volatility, rose by 2.53 per cent, indicating a slight uptick in investor caution.

Broader Market Update

In the broader market, the Nifty Midcap 100 and Smallcap 100 indices advanced by 0.8 per cent and 0.4 per cent, respectively.

Expert Comments

Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity, noted, "The Nifty opened flat at 24,744 but wasted no time in staging a sharp rally early in the session, hitting a day’s high of 24,946. However, the momentum quickly reversed in the second half, dragging the index to an intraday low of 24,685. The index was caught in a tug-of-war between bulls and bears, ending the day volatile and directionless. On the sectoral front, strength was evident in Realty, Pharma, Auto, Healthcare, and Financial Services. Meanwhile, pressure mounted on Consumer Durables, Private Banks, and Media stocks, weighing on overall sentiment."

"Globally, metal stocks managed to extend modest gains after the People’s Bank of China cut interest rates to prop up economic growth. However, optimism was short-lived as US futures slipped on the back of a tech rally cooldown on Wall Street. In the derivatives space, out of total stocks, 153 advanced while 66 declined. Heavy open interest activity was seen in Dixon, Titagarh, Torrent Pharma, Solar Industries, and HFCL. On the Nifty options front, significant call OI buildup was noted at the 25,000 strike, while 24,700 and 24,000 held the highest open interest on the put side. The Put-Call Ratio (PCR) stands at a cautious 0.64," he added.

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