Indian stocks rebound after 7-m low

India’s key stock market indicators slightly increased on Wednesday as investors cautiously entered the market following a significant drop in the previous session, which pushed the index to its lowest level in seven months.

The Nifty 50 index was up 0.29 per cent at 23,092.46 points as of 10:18 AM IST, while the BSE Sensex index added 0.46 per cent to reach 76,189.48.

The indices fell by about 1.5 per cent each on Tuesday because of the uncertainty surrounding Donald Trump’s intentions for India. This came after the US President imposed trade tariffs on neighbouring countries shortly after assuming office.

“The sharp drop in benchmarks has provided a good opportunity for long-term investors to buy quality large-cap stocks, which is powering the blue chips higher,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

HDFC Bank and Reliance Industries, the top two stocks on the indexes, both saw a 0.5 per cent increase. HDFC Bank is scheduled to announce its quarterly results later today.

IT stocks gained 0.8 per cent after a 1.2 per cent drop in the previous session.

However, small caps and midcaps continued to struggle with high valuations, each falling about 1.5 per cent on the day. This brings their declines in January to 8.5 per cent and 7.2 per cent respectively, while the Nifty 50 has dropped 2.4 per cent.

Attribution: Reuters

Subediting: M. S. Salama