Stock markets rebound in initial trade as India-US talks instill optimism

Mumbai: Benchmark equity indices Sensex and Nifty rebounded in early trade on Tuesday amid hopes of progress in the India-US bilateral trade talks.

A day-long talk on the India-US bilateral trade deal will be held on Tuesday.

A rally in global peers also instilled optimism in the domestic stock market ahead of this week's US Federal Reserve policy meeting.

The 30-share BSE Sensex climbed 201.69 points to 81,987.43 in early trade. The 50-share NSE Nifty went up by 52.8 points to 25,122.

From the Sensex firms, Mahindra & Mahindra, Kotak Mahindra Bank, Axis Bank, Larsen & Toubro, UltraTech Cement, and NTPC were among the major gainers.

However, Titan, Asian Paints, HDFC Bank and State Bank of India were among the laggards.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Hong Kong's Hang Seng traded in positive territory while Shanghai's SSE Composite index quoted lower.

US markets ended higher on Monday.

Global oil benchmark Brent crude went up by 0.19 per cent to USD 67.57 a barrel.

Foreign institutional investors (FIIs) offloaded equities worth Rs 1,268.59 crore on Monday, according to exchange data.

On Monday, the Sensex declined by 118.96 points or 0.15 per cent to settle at 81,785.74 after five days of rally. The Nifty settled lower by 44.80 points or 0.18 per cent to 25,069.20, halting its eight days of uptrend.