Sensex jumps 650 points on buying in power, banking stocks

Core Viewpoint - The power sector is experiencing growth due to expectations of sustained demand momentum, contributing to a rebound in equity benchmark indices [5]. Group 1: Market Performance - Equity benchmark indices Sensex and Nifty rebounded sharply by nearly 1 percent, with the BSE Sensex rising 650.39 points (0.79 percent) to close at 83,277.15 and the NSE Nifty advancing 211.65 points (0.83 percent) to settle at 25,682.75 [3]. - PowerGrid emerged as the top gainer in the Sensex pack, rising 4.45 percent, alongside strong performances from HDFC Bank, Axis Bank, NTPC, and others [4]. Group 2: Analyst Insights - Analysts noted that domestic markets edged higher due to renewed buying interest in banking and power stocks, with improved loan growth and stable asset quality boosting confidence in banks [5]. - The power sector's gains are attributed to expectations of sustained demand momentum, indicating a positive outlook for the industry [5]. Group 3: Global Market Influences - A decline in the US 10-year yield, following benign inflation data, has strengthened expectations of a Federal Reserve rate cut, which is influencing investor sentiment [7]. - Stability in the rupee and range-bound crude oil prices are providing additional support to domestic equities, particularly ahead of US-Iran talks [7]. Group 4: Institutional Activity - Foreign institutional investors sold equities worth Rs 7,395.41 crore, while domestic institutional investors purchased stocks worth Rs 5,553.96 crore, indicating a mixed sentiment in the market [9].