Indian Stock Market Rebounds: Sensex and Nifty End Losing Streak, Led by Banks and FMCG Stocks

Indian stock indices, the Sensex and Nifty, rebounded from a three-day losing streak on Monday, driven by renewed interest in financial services and FMCG stocks. These sectors had experienced a recent downturn.

The market opened lower, reflecting concerns about the US economy's health following last week's job data, which hinted at a slowing labor market. However, positive sentiment prevailed as investors weighed the possibility of interest rate cuts against recession fears.

At the close of trading, the Sensex gained 375 points (0.5%) to 81,559, while the Nifty rose 84 points (0.3%) to 24,936. Of the listed companies, 1,576 stocks appreciated, 2,300 declined, and 130 remained unchanged.

Commenting on the market's performance, Vinod Nair, Head of Research at Geojit Financial Services, noted, "The market is currently trying to find its footing amid the uncertainty surrounding potential rate cuts and recession risks in the US. The recent trend in US job data suggests that a 25 basis point rate cut might not be enough to address these concerns."

Despite the overall positive market sentiment, 10 out of 13 sectoral indices remained in the red. The Nifty Bank and Nifty Private Bank indices rose by over 1%, driven by strong performances from HDFC Bank, ICICI Bank, and Axis Bank. The Nifty FMCG index surged over 2%, supported by ITC, Hindustan Unilever (HUL), and Godrej Consumer Products. HUL's shares hit a new high after announcing plans to review its ice cream business.

However, the Nifty IT index declined by 0.7%, weighed down by Tech Mahindra, Coforge, and Wipro. The IT sector, which is heavily reliant on international markets, was impacted by weak US job data. Beyond the Nifty 50, broader indices like the BSE Midcap and BSE Smallcap underperformed, losing between 0.3% and 0.6%.

The volatility index, India VIX, which had surged in the previous session, retreated by over 6% to 6.4%.

Investors are now eagerly awaiting the release of the US consumer price index data on September 11 and the initial jobless claims data on September 12, as these figures could provide insights into the global economic outlook and influence market sentiment. Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing involves risks, and past performance is not indicative of future results. Please consult with a financial advisor before making any investment decisions.