The Indian stock market rebounded on Monday, the first day of the new week, as key domestic indices Sensex and Nifty surged in early trade after a sharp decline last week. hit an early high at 72,631.93, up 722 Points from last day's closing of Rs 71,909.70. Earlier, the index started the session with a huge gap-up at 72,340.95. Meanwhile, NSE's Nifty50 soared 199 points to an early high at 22,621.80. Earlier, the NSE's 50-share index started the session at 22,532.40--significantly higher than the last close of 22,421.95.
Why the Stock Market Witnessed A Sharp Rebound: 3 Factors
1- Ease In Crude Price
Crude oil prices declined to a level of $100 per barrel in the international market in the last few days. The downturn played a crucial role in the market rebound today. Last seen, Brent Crude--the international oil benchmark--was trading at a level of 101.7 per barrel. While WTI Crude was quoted at $90.16 per barrel.
2- Accenture Strong Q1 Results
According to V K Vijaykumar, Chief Investment Strategist, Geojit Investments Limited, after eight weeks of declines, the market appears set for a rebound in the near term. The better-than-expected results of Accenture and the appointment of Anup Bagchi as MD and CEO of HDFC Bank have the potential to lead to a turnaround in the market.
“Anup Bagchi is set to be the next chief executive and managing director of HDFC Bank, with the Reserve Bank clearing his name to lead the largest private sector lender on Thursday,” he added.
3- Positive Global Cues
Major Asian peers traded sharply higher, giving a boost to the domestic stock market. Nikkei 225 index jumped over 2 per cent, while the Hang Seng index quoted marginally lower. Meanwhile, US markets closed on a higher note on Friday.
Top Losers and Gainers
In early trade, Bajaj Finance, Bajaj Finserv, ITC, Larsen & Toubro, Axis Bank and State Bank of India were trading in green among the Sensex basket.
On the other hand, Bharat Electronics, Sun Pharma, Infosys and Asian Paints were in red.