Nifty, Sensex jump from day's lows, gain on buying in PSU bank stocks; 'serious correction unlikely'

The overarching trend of this market is its bullishness despite negative triggers. The rising bond yields in the US and geopolitical tensions are not impacting the market at all, according to analysts.

Indian equity markets extended gains to fifth straight day as buying was seen in PSU banks and pharma names. Nestle India rose 2 percent lifting benchmarks as investors digested earnings above-estimate earnings from the index heavyweight.

The Sensex was up 486.50 points or 0.66 percent at 74,339.44, and the Nifty was up 167.90 points or 0.75 percent at 22,570.30. The market breadth favoured gainers as around 1,963 shares advanced, 1,676 shares declined, and 143 shares unchanged.

On weekly and monthly F&O expiry day, both Nifty and Sensex rebounded significantly from day's low. The Nifty surged past the 22,600 mark, while the Sensex rallied over 700 points from its intra-day low. The India VIX spiked by over 8 percent, indicating persistent volatility.

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Notably, the Nifty PSU bank index soared to an all-time high, with SBI reaching a record peak. However, Kotak Bank experienced its most significant intraday decline of 10 percent since March 23, 2020. On the other hand, Axis Bank surpassed Kotak Bank to become the fourth-largest lender, driven by margin surprises.

According to V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, the overarching trend of this market is its bullishness despite negative triggers. “The rising bond yields in the US and geopolitical tensions are not impacting the market at all,” he said.

Even though FIIs sold equity worth a massive Rs 25,853 crore in the last seven days, DII buying overwhelmed this selling and the market continued its upward momentum.

“There are reports of Israel striking some sites linked to Hezbollah, but these will be ignored by the market unless it causes serious rector tensions. Since the VIX is at low levels, the market will not witness any serious corrections. In the near-term, consolidation is likely,” said Vijayakumar.

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