Sensex Rebounds 161 Points, IT Stocks and HDFC Bank Lift Nifty Above 22,750

Mumbai witnessed a rebound in Indian stock markets on October 14, 2021, as the Sensex and Nifty indices recovered from early losses. The BSE Sensex opened the day at 73,000.82, slipping 32.96 points, while the Nifty fell to 22,688.75 from its previous session's level. However, the market sentiment shifted, with the Sensex trading at 73,195.26, up 161.48 points, and the Nifty advancing 36 points to 22,757.95, indicating a successful reversal of the previous day's decline.

These figures represent intraday trading levels, with the final session's closing performance yet to be determined.

The rally in the tech sector was the primary driver of the gains, with major IT stocks like Tata Consultancy Services, HCL Technologies, Infosys, and Tech Mahindra leading the buying spree. HDFC Bank and Kotak Mahindra Bank also contributed to the supportive environment, along with UltraTech Cement and Maruti Suzuki, among other advancing stocks.

However, the mixed performance of several heavyweight stocks, such as Sun Pharma, Bajaj Finance, Bajaj Finserv, Larsen & Toubro, Power Grid, and Eternal, highlighted that buying remained concentrated in select companies rather than spreading uniformly across the benchmark constituents.

The recovery in the Indian markets was fueled by rising oil prices, with Brent crude increasing by 0.62 per cent to $106.4 a barrel. Despite this, foreign institutional investors continued to offload Indian equities, selling a total of ₹1,305.13 crore on Tuesday. This outflow continued despite the substantial gains witnessed on the previous session.

Additionally, the recovery in Asian markets offered further support to the Indian stock markets, as the Kospi in South Korea, Japan's benchmark index, Shanghai's SSE Composite, and Hong Kong's Hang Seng all traded higher. In contrast, Wall Street had ended lower on the same day.