Indian equity benchmarks snapped their four-day losing streak on Thursday, staging a robust recovery in early trading sessions. The markets opened on a positive note, buoyed by a combination of supportive global cues and selective buying in key index heavyweights.
Market Indices Register Strong Gains
The 30-share BSE Sensex witnessed a significant upswing, climbing 448.03 points or 0.60 per cent to reach 74,298.04 in the initial hours of trade. The broader NSE Nifty followed suit, advancing 117.75 points or 0.52 per cent to 22,567.50. This rally marked a decisive shift in sentiment after a period of sustained selling pressure.
Among the Sensex constituents, several major players led the charge. Power Grid, Tata Steel, NTPC, Mahindra & Mahindra, and UltraTech Cement emerged as the top gainers. However, the rally was not uniform across the board. Shares of HCL Technologies, Infosys, and ICICI Bank traded in negative territory, reflecting a mixed trend among sectoral leaders.
Sectoral Performance and Mid-Small Cap Recovery
The buying interest was broad-based, lifting most sectoral indices. The BSE midcap gauge rose by 0.80 per cent, while the smallcap index advanced 0.72 per cent, indicating a recovery beyond just the large-cap frontliners. This suggested a return of risk appetite among domestic investors.
On the sectoral front, utilities, power, commodities, and industrials were among the best performers. In contrast, the IT and teck indices faced some selling pressure, continuing their recent underperformance. The overall market breadth was positive, with a higher number of advancing shares compared to those that declined.
Global Cues and Previous Session Context
The rebound in domestic markets was partly inspired by a firm trend in global markets. Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, were trading with gains. The US markets had also ended significantly higher on Wednesday, providing a positive backdrop.
This recovery came after a period of sustained decline. On the previous trading day, Wednesday, the BSE Sensex had settled lower by 45.46 points or 0.06 per cent at 73,850.01. The Nifty had also dipped marginally by 10.55 points or 0.05 per cent to close at 22,449.75. Foreign Institutional Investors (FIIs) were net sellers in Wednesday's session, offloading equities worth Rs 6,669.10 crore, according to exchange data.
Analysts pointed out that the market found support at lower levels, with value buying emerging in several oversold segments. The focus now shifts to corporate earnings announcements, global crude oil prices, and foreign fund activity for further direction. While the early trade rebound is encouraging, market participants remain cautious, watching for sustainability in the upward move throughout the trading session.
