Markets bounce back after 4-day decline; Sensex jumps over 600 points in early trade

Benchmark indices rebounded on Thursday after a four-day decline, with the Sensex rallying over 600 points in early trade, tracking firm global trends and buying in index major Reliance Industries.

The BSE benchmark was trading with a jump of 601.11 points at 53,142.50. The Nifty rallied 171 points to 15,863.15.

From the Sensex pack, Reliance Industries, Maruti, ICICI Bank, ITC, HDFC and State Bank of India were the major gainers in early deals.

On the other hand, PowerGrid, Bharti Airtel and Nestle were the laggards.

Elsewhere in Asia, markets in Tokyo, Seoul and Shanghai were trading in the green, while Hong Kong quoted marginally lower.

Stock exchanges in the US ended with sharp gains in the overnight session on Wednesday.

Overnight gains in the US markets is expected to charge up local bulls, after the policy rate hike of 75 basis points by the US Federal Reserve came in as anticipated, said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd.

“Easing WTI crude oil prices could also boost sentiment, as domestic equities have been under severe bear hammering for the past few sessions due to relentless FII selling,” he added.

The BSE benchmark settled 152.18 points or 0.29 per cent lower at 52,541.39 on Wednesday. The NSE Nifty declined by 39.95 points or 0.25 per cent to 15,692.15.

Meanwhile, international oil benchmark Brent crude gained 0.68 per cent to USD 119.32 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 3,531.15 crore on Wednesday, as per exchange data.