Synopsis: Sensex climbed 397.74 points (0.51%) to 78,362.73, and Nifty rose 165.05 points (0.7%) to 23,781.10 after a sharp selloff on Monday. Pharma and healthcare stocks remained strong amid concerns about the HMPV virus. Titan Company, Adani Ports, Asian Paints, IndusInd Bank, and Reliance Industries led the gains. Experts advise buying strong beaten-down stocks in automobiles and financials during dips.
The Indian stock market bounced back on Tuesday after a significant selloff in the previous session triggered by concerns over the Human Metapneumovirus (HMPV).
Investors reassessed the situation, deeming the panic-driven reaction unwarranted.
The BSE Sensex advanced 397.74 points (0.51%) to 78,362.73, while the NSE Nifty gained 165.05 points (0.7%) to close at 23,781.10.
Broader Market Sentiment:
Market breadth remained positive, with three stocks rising for every one that declined.
Notable gainers included Adani Ports, Asian Paints, IndusInd Bank, and Reliance Industries, which climbed between 1.3% and 1.6%.
Tata Motors, ICICI Bank, Power Grid, Tata Steel, and UltraTech Cement also posted gains exceeding 1%.
Expert Commentary:
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that Monday's 1.6% decline in Nifty was an overreaction to the HMPV concerns.
“The clarification by the government that the virus is not new and poses no significant threat has reassured investors,” he stated.
Vijayakumar highlighted the contrast between Foreign Portfolio Investor (FPI) outflows of Rs 2,575 crore and Domestic Institutional Investor (DII) inflows of Rs 5,750 crore, underscoring robust local buying activity.
He also pointed out that momentum stocks showed signs of a rebound after Monday’s dip.
Titan and Kalyan Jewellers Shine:
Titan Company’s shares surged 3% to Rs 3,574.65, buoyed by 26% year-on-year jewelry sales growth in Q3, surpassing estimates.
The company added 69 new stores in the quarter. Analysts at MOFSL retained their ‘Buy’ rating on Titan with a target price of Rs 3,850.
Kalyan Jewellers also saw a 5% rise in its stock price after reporting a 39% year-on-year revenue growth in Q3 and opening 24 new stores during the period.
Technical Insights:
Akshay Chinchalkar, Head of Research at Axis Securities, emphasized the importance of Nifty holding above 23,500 for sustained recovery.
“Bears hold the upper hand until 24,060 is breached. A break below 23,500 could shift focus back to the November lows near 23,260,” he added.
However, options data suggests that declines, if any, are likely to attract buyers.
Conclusion:
Tuesday’s market rebound highlighted resilience among key sectors and stocks, despite lingering concerns about the HMPV virus.
Positive domestic institutional activity and government reassurances have rekindled investor confidence.
Analysts recommend focusing on fundamentally strong stocks in automobiles and financials during market dips.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.
