Market Rebound: Investors Gain Rs 13.22 Lakh Crore Post-Rout Recovery

Investor wealth: Throughout the trading session, the index rallied by 2,455.77 points (3.40 per cent), reaching an intraday high of 74,535

Reflecting the renewed optimism on Dalal Street, the market capitalisation of BSE-listed companies soared $4.89 trillion.

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Investor wealth: A day after facing massive wealth erosion, equity investors experienced a significant turnaround, gaining Rs 13.22 lakh crore on Wednesday as markets made a robust comeback. The BSE Sensex surged 2,303.19 points (3.20 per cent) to close at 74,382. Throughout the trading session, the index rallied by 2,455.77 points (3.40 per cent), reaching an intraday high of 74,535.

Reflecting the renewed optimism on Dalal Street, the market capitalisation of BSE-listed companies soared by Rs 13,22,847.05 crore, climbing to Rs 4,08,06,552.32 crore ($4.89 trillion).

"Indian markets demonstrated a spirited recovery driven by broad-based buying across various sectors, as political stability appears assured. However, focus will remain on the formation of the government and the forthcoming RBI policy meeting," commented Vinod Nair, Head of Research at Geojit Financial Services.

All 30 Sensex companies ended in the green, with IndusInd Bank leading the gains, surging nearly 8 per cent. Other major gainers included Tata Steel, Mahindra & Mahindra, Bajaj Finance, Kotak Mahindra Bank, Axis Bank, HDFC Bank, Hindustan Unilever, and JSW Steel.

Tuesday's significant laggards, such as NTPC, State Bank of India, Larsen & Toubro, and Power Grid, also rebounded and closed in the green.

In the broader market, the BSE Midcap gauge rose by 4.41 per cent, while the Smallcap index rallied by 2.93 per cent.

All sectoral indices ended positively, with notable gains in telecommunications (6.01 per cent), services (5.74 per cent), metals (5.36 per cent), auto (4.50 per cent), commodities (4.48 per cent), and consumer discretionary (4.29 per cent).

A total of 2,597 stocks advanced, while 1,221 declined, and 100 remained unchanged.

"Over the next few days, significant activity is expected around the NDA's move to stake a claim for government formation, followed by discussions on key portfolio and ministry allocations, which could keep the equity markets volatile," noted Rupen Rajguru, Head of Equity Investments and Strategy at Julius Baer India.

This rebound follows a stark decline on Tuesday, when the market capitalisation of BSE-listed companies had eroded by Rs 31,07,806.27 crore, falling to Rs 3,94,83,705.27 crore ($4.73 trillion).

The 30-share BSE benchmark had plunged 4,389.73 points to settle at 72,079.05 on Tuesday. During that session, the index dropped by 6,234.35 points, or 8.15 per cent, hitting a nearly five-month low of 70,234.43.

This dramatic recovery underscores the market's volatility and the impact of political and economic developments on investor sentiment.