The 30-share pack Sensex jumped 872 points or 2.39 per cent at 37,426. The 50-share NSE Nifty, too, rose in tandem and was up 256 points or 2.37 per cent at 11,062. If benchmark indices manage to hold the gains till closing, then they will snap a six-day losing run but both are poised to report big weekly losses.
In the six-day rout, Sensex and Nifty fell about 7 per cent each. The former plunged nearly 800 points while its BSE peer dropped nearly 2,750 points, before bouncing back today.
Nifty Metal, which dropped nearly 12 per cent during the market, was among the top gainer, rising over 3 per cent; thanks to massive jumps in Jindal Steel, Nalco, SAIL and JSW Steel that added 4-9 per cent.
Nifty IT was another index that rose more than 3 per cent, thanks to the demand for tech stocks after valuation have come down. The defensive nature of the stocks is also attracting worried investors.
All stocks in the index were in the green, led by Coforge that advanced nearly 8 per cent. HCL Tech and TCS, which bagged a contract to build the technology infrastructure for US and Canada-based women’s fashion retail chain Maurices, were other top gainers.
“Keep accumulating quality stocks with decline. Be more balanced. Do not simply buy just because you have seen a 2,000-point correction in one week. All the big tech names are off 15 per cent; one can gradually accumulate them,” said Gurmeet Chadha, Co-Founder & CEO, Complete Circle Consultants.
Nifty Media also gained more than 3 per cent, which comes after nearly 12 per cent drop. Dish TV, TV Today, Hathway Cable and Sun TV were among the top gainers in the range of 3-5 per cent, lifting the media index.
The biggest loser of the fall, Nifty PSU Bank that fell more than 13 per cent, was up 2.58 per cent as buyers returned to Bank of Maharashtra, Indian Overseas Bank, Canara Bank and Bank of Baroda stocks.
However, analysts believe the gains in most of the sectors could be short-lived as market dynamics point towards prolonged depression. “Cyclicals will be hammered further. People have stocked up on defensive stocks, and that pack which has stayed resilient, may also feel the heat. Stability in the global markets could be the only saviour right now,” Abhimanyu Sofat, Head of Research, IIFL Securities said.