Sensex Rebounds After Two-Day Selloff, Rises 118 Points

Sensex rebounded after two-day selloff and Nifty settled above its crucial psychological level of 8,100 on the back of value buying in frontline FMCG, auto, metal and banking shares.

The Sensex advanced 118 points to close at 26,349 and Nifty settled at 8,129, up 42 points.

Indian stock markets suffered a selloff in November due to the twin shocks of Donald Trump's victory in US presidential elections and the government's demonetisation measures. Market expert Anil Manghnani of Modern Shares and Stock Brokers says that the Nifty is in a process of bottoming out and it may take at least four weeks for the markets to recover from here on.

"The bottoming out of market downturn is a process rather than an event and it normally takes four week or so for markets to bottom out. The Nifty hit 7,900 couple of weeks ago, so at least two more weeks are ideally required for Nifty to bottom out," he said. 

Mr Manghnani says that 7,900 for Nifty is an important psychological level.

Meanwhile, from the Nifty basket of shares, 34 ended higher while 17 closed lower.

Asian Paints was the top Nifty gainer, up 3.6 per cent to close at Rs 938. Hindalco, Lupin, Mahindra & Mahindra, Yes Bank, Maruti Suzuki, ITC, Tata Steel, Ambuja Cements, Bharti Airtel and Tata Motors were also among the gainers.

On the other hand, Tech Mahindra, HDFC, TCS, Idea Cellular, Sun Pharma and Wipro were among the laggards in Nifty.

The broader markets ended on a positive note with BSE mid-cap index advancing 0.66 per cent and small-cap index jumping 0.26 per cent.

The overall market breadth was positive as 1,531 shares were advancing while 1,099 were advancing.