Sensex surges over 500 points, Nifty gains nearly 120 points on softer US Treasury yields

The domestic benchmark equity indices rebounded on Thursday after days of slump tracking global cues as softer US Treasury yields improved global investor sentiment in equity marketsMarket movementAfter extending its losses for four days the 30share Sensex recovered to surge 50415 points or 066 per cent to 7741383 in the early deals The 50share Nifty snapped its seven day losing streak to climb 11935 points or 050 per cent at 2419765 in the initial tradeThe market which has been steadily down trending for the last 12 trading sessions appears set for a shortterm reversal now The market is in oversold territory and a mild rally triggered by shortcovering is likely The decline in US bond yields indicates a positive potential construct for equity markets globally VK Vijayakumar Chief Investment Strategist Geojit Investments saidA significant trend in the market is that while large caps are languishing the midand smallcaps are doing well This rally has fundamental support from revenue and earnings growth Segments like CDMO Contract Development and Manufacturing Organization precision engineering and power infrastructure are doing very well and the management commentaries are very positive Part of the good news in these segments are already in the price but there is more room for price appreciation in these segments he addedOn Wednesday the Sensex slumped 32578 points or 042 per cent to settle at 7690968 extending its losses for the fourth day with the benchmark declining 117028 points or 149 per cent during the four days The 50share NSE Nifty registered its seventh day of loss and shed 7660 points or 032 per cent to end at 2407830 declining 5055 points or 2 per cent during this periodWe are of the view that the intraday market texture is weak but one quick pullback rally is not ruled out if the market surpasses the 2420077400 resistance mark Above that we could expect a technical bounce back to the 24300ndash243507750077800 levels Shrikant Chouhan Head Equity Research Kotak Securities saidFrom the Sensex pack barring Tata Steel all the stocks were trading higher Infosys Eternal Axis Bank Bajaj Finance Tech Mahindra Hindustan Unilever were the major gainers with all their stocks trading over 1 per cent higher in the initial dealingsGlobal cuesThe US Treasury announced that it would double its buyback operations for longerdated Treasury bonds thus pushing the USlong term yields lower A lower US Treasury yield benefits emerging markets such as India as investors look for other alternativesAccording to news agency PTI Foreign Institutional Investors FII purchased equities worth Rs 40799 crore on a net basis on Wednesday while Brent crude the global oil benchmark was trading higher by 032 per cent at USD 9191 per barrel in futures tradeIn the Asian market South Koreas Kospi Japans Nikkei 225 and Shanghais SSE Composite and Hong Kongs Hang Seng index all traded higherWith inputs from PTI