Stock markets rebound makes investors richer by ₹8.97 lakh crore in single day

Stock investors recouped ₹8.97 lakh crore as equity markets staged a sharp rebound on Wednesday ending a three-day slump following a rally in global peers.

The BSE benchmark Sensex jumped 874.94 points or 1.11% to settle at 79,468.01. During the day, it soared 1,046.13 points or 1.33% to 79,639.20.

Thanks to the smart recovery in equities, the market capitalisation of BSE-listed firms went up by ₹8,97,352.99 crore to ₹4,48,57,306.55 crore ($5.34 trillion).

"Global markets experienced a notable rebound after the BoJ's Deputy Governor reassured that the central bank would not raise interest rates during a period of financial instability. The Indian market also witnessed broad-based buying across sectors, with the realty sector seeing a relief rally due to the reinstatement of indexation benefits," said Vinod Nair, Head of Research, Geojit Financial Services.

Investors' wealth had eroded by a whopping ₹22 lakh crore in the past three days of market slump where the BSE benchmark tanked 4%.

"Domestic markets rallied sharply much in sync with optimism in global equity indices, although risk off sentiment could still prevail on the back of rising tension in the Middle East," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

On Wednesday, in the broader market, the BSE midcap gauge jumped 2.63% and smallcap index climbed 2.39%.

All indices ended in the positive territory. Oil & Gas jumped 3.75%, metal surged 3.44%, energy (3.32%), capital goods (2.89%), telecommunication (2.80%), services (2.53%), commodities (2.49%) and healthcare (2.03%).

Among the 30 Sensex firms, Adani Ports and Power Grid climbed over 3% each. Tata Steel, JSW Steel, Infosys, Mahindra & Mahindra, Maruti, and Larsen & Toubro were the other big gainers.

IndusInd Bank, Bharti Airtel, Hindustan Unilever, Tech Mahindra and Titan were the laggards.

As many as 2,985 stocks advanced while 948 declined and 98 remained unchanged.

Asian markets settled in the positive territory, where Seoul, Tokyo, Shanghai and Hong Kong ended significantly higher.

European markets also rallied. The US markets ended higher on Tuesday.