The Nifty is trading above 17,250 in initial trading.
The Nifty is trading above 17,250 in initial trading.
Stock benchmark Sensex rose 423.14 points in early trade on Thursday, April 21, 2022, led by strong gains in index majors Reliance Industries, Bajaj Finserv and Asian Paints amid a mixed trend in global markets.
The BSE benchmark Sensex traded 423.14 points higher at 57,460.64. The Nifty gained 117.25 points to 17,253.80.
The 30-share Sensex package included IndusInd Bank, Reliance Industries, Asian Paints, Bajaj Finserv, Dr. Reddy’s and M&M among the big winners.
In contrast, Nestle, Tata Steel, HCL Technologies and Axis Bank lagged behind.
The BSE Sensex halted its five-day decline on Wednesday, closing 574.35 points, or 1.02 percent, higher at 57,037.50. The NSE Nifty rose 177.90 points, or 1.05 percent, to 17,136.55.
Meanwhile in Asia, Tokyo and Seoul markets traded in the green while Hong Kong and Shanghai were lower on deals during the session.
Stocks in the US ended on a mixed note on Wednesday.
“Markets overreaction”
“Markets often overreact, both up and down. When reason sets in, prices normalize. The stretched valuations of IT stocks, particularly in the mid-cap space, were the result of the market overreacting to strong results and good earnings forecasts.
“Slight disappointments in expectations are swinging the pendulum the other way and depressing prices. While there is some margin pressure in the IT space, results for mid-cap IT stocks suggest strong earnings momentum,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He added that similarly, FIIs’ relentless selling of HDFC twins and shorting by bears swimming with the FII current have created another instance of overreaction, pushing prices down to fundamentally unjustifiable levels Has.
The international oil benchmark Brent rose 1.16 percent to $108 a barrel.
Overseas institutional investors continued their selling spree, selling a net 3,009.26 crore of shares on Wednesday, according to stock market data.
