Investors get richer by ₹2.76 lakh crore as markets rebound from Friday selloff
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Investors added nearly ₹2.76 lakh crore to their wealth on Monday as benchmark indices rebounded from Friday's sharp selloff, aided by cooling crude oil prices, domestic institutional buying and gains in heavyweight stocks such as Reliance Industries and HDFC Bank.
The total market capitalisation of all BSE-listed companies rose to ₹479.72 lakh crore from ₹476.96 lakh crore in the previous session, creating wealth of about ₹2.76 lakh crore for investors.
The recovery came after markets witnessed a steep correction on Friday following concerns over global technology spending and geopolitical uncertainty.
The BSE Sensex climbed 291.17 points, or 0.38%, to settle at 77,094.07, while the NSE Nifty 50 gained 89.80 points, or 0.37%, to close at 24,102.90.
DII buying offsets foreign outflows
Domestic institutional investors (DIIs) remained supportive of the market, purchasing equities worth ₹1,035.72 crore on a provisional basis, according to exchange data.
Foreign institutional investors (FIIs), however, turned sellers after Friday's strong buying spree, offloading shares worth ₹635.91 crore.
The selling by overseas investors comes after FIIs had pumped nearly ₹4,859 crore into Indian equities on Friday, helping them end last week as net buyers.
Analysts said the market's ability to recover despite renewed foreign selling highlights the resilience of domestic liquidity.
Crude cools, sentiment improves
Investor sentiment was aided by a decline in global crude oil prices amid hopes of diplomatic progress in talks involving the United States and Iran.
Brent crude, the global benchmark, slipped below the $80-per-barrel mark, easing concerns around imported inflation and India's current account deficit.
The softer crude prices also boosted sentiment in oil-sensitive sectors and supported broader risk appetite across markets.
Reliance, IT stocks lead recovery
Among Sensex constituents, Tech Mahindra emerged as the top gainer with a rise of 1.87%, followed by Sun Pharma, Reliance Industries, Infosys and Bharat Electronics.
Reliance Industries gained 1.31%, providing significant support to the benchmark indices after witnessing pressure in recent sessions.
Technology stocks also staged a recovery after Friday's sharp selloff triggered by Accenture's weaker-than-expected guidance.
Infosys advanced 1.29%, while Tech Mahindra gained nearly 2%.
Broader markets join rally
The rebound was not restricted to large-cap stocks.
The BSE SmallCap Select index rose 0.60%, while the MidCap Select index gained 0.45%, indicating broader participation in the recovery.
Market breadth remained positive, with 2,635 stocks advancing against 1,754 declines on the BSE.
Sectorally, utilities, healthcare, energy, oil & gas and information technology stocks led the gains, while consumer durables and FMCG shares ended lower.