Investors become richer by Rs 4 lakh crore as markets bounce back after three-day fall

NEW DELHI: With a rebound in equities after a three-day fall, investors‘ wealth climbed Rs 4 lakh crore on Friday, mirroring optimism in global markets. The 30-share BSE Sensex jumped 496.37 points or 0.70 per cent to settle at 71,683.23. During the day, it rallied 708.78 points or 0.99 per cent to 71,895.64.
Following the recovery in domestic equities, the market capitalisation (mcap) of BSE-listed firms jumped Rs 4 lakh crore to Rs 373.57 lakh crore.
In the past three days, the BSE benchmark fell by 2.91 per cent.
“Markets rebounded from its 3-day losing streak on renewed all-round buying support, aided by recovery in global indices. The recent fall was extremely fast-paced and concerns of higher valuations along with global factors prompted investors to book profit.
“However, India’s strong growth prospects in the long-term will always provide a cushion to the falling markets,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Among the Sensex firms, Bharti Airtel, NTPC, Tech Mahindra, Tata Steel, Mahindra & Mahindra, UltraTech Cement, Titan, Axis Bank, JSW Steel and Larsen & Toubro were the major gainers.
IndusInd Bank, HDFC Bank, Kotak Mahindra Bank and State Bank of India were among the laggards.
“A ‘buy on dips’ and encouraging global cues propelled the market’s recovery. Today’s rebound was broad-based; however, investors are disappointed and expect moderation in the rally.
“As FIIs persist with risk-off sparked by the likelihood that interest rates may not moderate and domestic earnings growth can slow down as per the initial Q3 results announced,” said Vinod Nair, Head of Research, Geojit Financial Services.
In Asian markets, Seoul, and Tokyo settled in the green, while Shanghai and Hong Kong ended lower.
European markets were trading higher. The US markets ended with gains on Thursday.
In the broader market, the BSE midcap gauge jumped 1.69 per cent and smallcap index climbed 1.06 per cent.
All the indices ended higher. Oil and gas rallied 2.17 per cent, metal zoomed 1.69 per cent, industrials went up by 1.62 per cent, energy climbed 1.58 per cent, commodities jumped 1.44 per cent, teck (1.29 per cent) and IT (1.06 per cent).

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