Stock markets recover from 2-day decline on firm global cues, easing rate hike worries

NewsDrum Desk
21 Nov 2023
New Update

Mumbai, Nov 21 (PTI) Benchmark stock indices Sensex and Nifty rebounded on Tuesday after two days of decline following buying in select metal and banking shares and a bullish trend in the US markets on easing rate hike worries.


The 30-share BSE Sensex climbed 275.62 points or 0.42 per cent to settle at 65,930.77 as its 18 components advanced while 12 declined. During the day, it jumped 427.21 points or 0.65 per cent to 66,082.36.

The broader Nifty went up by 89.40 points or 0.45 per cent to 19,783.40. As many as 30 NSE shares gained while 20 closed in the red.

JSW Steel was the lead gainer among Sensex shares, rising by 1.76 per cent. Tata Steel rose by 1.45 per cent, and Titan by 1.44 per cent.


Oil major Reliance Industries advanced 1.24 per cent, helping the indices snap two days of losses.

Among banking shares, HDFC Bank, ICICI Bank and Axis Bank gained. Sun Pharma, Bharti Airtel, Tata Motors and Bajaj Finserve also advanced.

NTPC, Tech Mahindra, Maruti, State Bank of India and Larsen & Toubro were among the laggards.


Vinod Nair, Head of Research at Geojit Financial Services said, "Today, the market exhibited positive momentum, with attention centred on the minutes of the latest Fed meeting. The declining inflation and the recent cooling job data in the US provide foundation for a dovish comment from the Fed." The drop in bond yields and the dollar index suggests mounting speculation regarding the potential peak in the interest rate cycle.

"This will attract funds to emerging markets. The gain in the broad market was led by consumer durables and realty, thanks to a strong rebound in festive demand," Nair added.

The US dollar index eased by 0.10 per cent to 103.33 ahead of the release of the Fed minutes later in the day.


In the broader market, the BSE smallcap gauge climbed 0.20 per cent and midcap index gained 0.14 per cent.

Among the indices, consumer durables jumped 1.34 per cent, commodities climbed 0.77 per cent, healthcare (0.59 per cent) and financial services (0.37 per cent).

FMCG, industrials, IT, telecommunication and oil & gas were the laggards.


A total of 2,018 stocks advanced while 1,701 declined and 134 remained unchanged on the BSE.

In Asian markets, Seoul settled with gains while Tokyo, Shanghai and Hong Kong ended lower.

European markets were trading on a mixed note. The US markets ended in positive territory on Monday as bond yields eased as well the dollar weakened.


Global oil benchmark Brent crude declined 0.61 per cent to USD 81.82 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 645.72 crore on Monday, according to exchange data.

The BSE benchmark declined 139.58 points or 0.21 per cent to settle at 65,655.15 on Monday. The Nifty slipped 37.80 points or 0.19 per cent to 19,694. PTI SUM MR