Sensex, Nifty rebound after last week’s slump led by rally in IT stocks

Benchmark stock market indices opened on a positive note Monday, driven by a surge in IT stocks following robust US jobs data, which helped reduce recession fears.
The S&P BSE Sensex was up 239.85 points to 81,928.30, while the NSE Nifty50 added 60.40 points to 25,075.00 as of 9:35 AM.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that globally stock markets have been resilient despite the escalating tensions in the Middle East.
“A big positive for equity markets is the strong US economy where the September non-farm job numbers have come surprisingly robust at 2.54 lakhs. The combination of a strong economy and declining inflation in the mother market of the US is a big positive,” he added.
The indices had faced a sharp decline of 4.5% last week, marking their worst performance in over two years due to escalating concerns about the Middle East conflict and increasing foreign outflows.
However, Friday’s strong US labour market data helped ease recession fears, bolstering market sentiment.
The IT sector led the gains, with Nifty IT rising by 0.80%. Financial services also performed well, with Nifty Financial Services up 0.26%, Nifty Financial Services 25/50 gaining 0.17%, and Nifty Private Bank increasing by 0.29%. Nifty Bank also saw a positive movement, rising 0.25%. Nifty FMCG and Nifty Pharma showed modest gains of 0.14% and 0.10% respectively.
On the downside, Nifty Media experienced the steepest decline, dropping 1.41%. Nifty Metal also faced a significant setback, falling by 1.18%. Nifty PSU Bank decreased by 0.58%, while Nifty Auto saw a slight dip of 0.15%
“The market has been following a different path with the Nifty declining 4.5% in a week. This sharp correction has been mainly triggered by the massive FII selling in the cash market which reached Rs 40509 crores during the last four days. Leading largecaps like RIL, HDFC bank and ICICI bank which are major holdings in the AUM of FIIs bore the brunt of the FII onslaught. This correction is an opportunity for long-term investors since the valuations of these stocks are fair and prospects look good. DIIs flush with funds will continue to buy the beaten down quality stocks,” said Vijayakumar.