Stock indices rebound led by metal, banking stocks, gain 1%

Benchmark stock market indices witnessed a sharp recovery gaining about 1%, reclaiming large part of the previous day’s losses amid uncertainty over Q2 GDP forecast and outcome of the U.S. Presidential election.

The S&P BSE Sensex, which was trading in the negative territory in the first half, surged backed by buying in metal and banking stocks, and closed with a gain of 694.39 points or 0.88% at 79,476.63.

The top Sensex gainers included JSW Steel (4.72%), Tata Steel (3.64%), Axis Bank (2.73%), HDFC Bank (2.56%), IndusInd Bank (2.49%), State Bank of India (2.33%).

The NSE Nifty-50 index too surged 217.95 points or 0.91% to 24,213.30.

Deepak Jasani, Head of Retail Research, HDFC Securities Ltd said, “A sharp recovery post noon saw the markets bouncing up led by metal, oil and gas and bank stocks. China’s national steel PMI increased by 5.6% to 54.6 in the month of October and returned to expansion territory for the first time after March 2023.” 

“This led to buying interest in metal stocks. Some squaring up of short positions ahead of the US elections this evening India time could also have helped turn around indices,” he said.

He said Europe’s indices flirted between gains and losses on Tuesday as investors gauged a slew of downbeat earnings, while all eyes remained on the U.S. presidential election. 

Asian markets mostly rose Tuesday, a day before results from the U.S. Presidential election rolled in, with opinion polls showing a knife-edge vote, Mr. Jasani said. 

Published - November 05, 2024 08:16 pm IST