Indian shares rebound at the open
Updates at 9:27 a.m. IST
By Bharath Rajeswaran
Nov 19 (Reuters) -Indian shares opened higher on Tuesday, with analysts attributing the rise to a short-term relief rally after a wide swathe of shares, including the benchmarks, slipped into correction territory in recent sessions.
The NSE Nifty 50 .NSEI was up 0.77% at 23,634.5 as of 9:27 a.m. IST, while the BSE Sensex .BSESN gained 0.75% to 77,928.36.
All the 13 major sectors logged gains. The more domestically-focussed small- .NIFSMCP100 and mid-caps .NIFMDCP100 rose about 1.4% and 1%, respectively.
India's benchmark BSE Sensex .BSESN entered correction territory onMonday amid concerns over foreign outflows and weak corporate earnings. TheNifty 50, which slipped into a correctionon Nov. 13, logged itslongest losing streak in more than 20 months in the prior session.
The Nifty's relative strength index also slipped below 30 in the last two sessions, indicating oversold conditions.
"Such downstreaks and oversold conditions have always led to short-term rebound in the markets and the bounce, we are seeing in the session, is overdue," said Akshay Chinchalkar, head of research at Axis Securities.
However, the near-term outlook for markets still remains cautious, given high valuations, foreign outflows and moderating earnings, analysts said.
Among individual stocks, NTPC NTPC.NS rose 3% on the day. The initial public offering of its unit, NTPCGreen Energy, will openfor subscription later in the day.
Ashoka Buildcon ABDL.NS gained 3% after securing two contracts worth 27.91 billion rupees ($330.7 million).
($1 = 84.4000 Indian rupees)
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema
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