Market Recovery Led by Value Buying
Indian stock markets rebounded on Thursday, with the benchmark Sensex closing 238.22 points higher at 76,741.82, or a gain of 0.31 per cent, following a sharp sell-off in the previous session. The 30-share BSE index opened higher and surged 823.05 points (1.07 per cent) to an intraday high of 77,326.65 before paring gains due to profit-taking in the last hour of trading. The broader NSE Nifty rose 80.75 points (0.34 per cent) to settle at 23,962.80, after touching a high of 24,134.70.
Analysts noted that cautious sentiment prevailed as geopolitical tensions escalated between the United States and Iran, with exchanges of strikes for a second consecutive day. Vinod Nair, Head of Research at Geojit Investments Limited, said, "Indian equity markets staged a moderate rebound, aided by supportive global cues, though investors remained watchful of the geopolitical developments that had triggered the last trading day’s sell-off."
Key Gainers and Losers
Among Sensex constituents, Sun Pharma emerged as the biggest gainer, rising 2.7 per cent. Bharti Airtel followed with a 2.15 per cent gain, providing significant support to the index. Other major contributors included Bajaj Finserv, InterGlobe Aviation, Eternal, Kotak Mahindra Bank, and HDFC Bank. On the losing side, Infosys dropped 1.8 per cent, becoming the top loser. Maruti, NTPC, and Axis Bank also ended in the red. TCS shares declined 0.52 per cent ahead of its quarterly results; after market hours, the company reported a modest 4.61 per cent increase in net profit to Rs 13,349 crore for the June 2026 quarter, with revenue jumping nearly 14 per cent year-on-year to Rs 72,275 crore.
Sectoral and Broader Market Performance
The recovery was led by mid-cap and small-cap stocks, with the BSE SmallCap Select index jumping 1.79 per cent and the MidCap Select index climbing 1.39 per cent. Among sectoral indices, Realty surged 3.70 per cent, followed by PSU Bank (1.73 per cent), Telecommunication (1.67 per cent), and MidSmall Private Banks Quality Tilt (1.39 per cent). Services, Consumer Durables, Capital Goods, Industrials, and FMCG each gained 0.94 per cent. IT, Utilities, and Auto sectors were the laggards. On the BSE, 2,896 stocks advanced, while 1,342 declined and 178 remained unchanged.
Global Cues and Investor Sentiment
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225, and Shanghai’s SSE Composite rebounded to close in positive territory, while Hong Kong’s Hang Seng ended lower. European markets traded mostly in the green. US markets ended mostly lower on Wednesday. Foreign Institutional Investors (FIIs) bought equities worth Rs 1,962.80 crore on Wednesday, according to exchange data. Brent crude, the global oil benchmark, traded marginally higher by 0.15 per cent to USD 78.14 per barrel.
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, commented, "Indian equities showed resilience today despite global volatility and escalating geopolitical tensions in West Asia. While the near-term market direction may remain mixed, strong domestic fundamentals are expected to support the broader recovery."
Ponmudi R, CEO of Enrich Money, added, "Indian equity markets staged a partial rebound on bargain buying after the previous session’s sharp Middle East-driven sell-off. However, investor sentiment remained cautious as the United States and Iran exchanged strikes for a second consecutive day, casting doubt over the prospects for diplomatic talks and keeping risk appetite subdued."
On Wednesday, the Sensex had tanked 1,677.12 points (2.15 per cent) to settle at 76,503.60, while the Nifty tumbled 516.65 points (2.12 per cent) to end at 23,882.05.
