Indian Stock Markets Stage Strong Rebound Amid Global Rally
Benchmark indices Sensex and Nifty experienced a significant recovery on Thursday, surging more than 1 per cent as Indian equities mirrored a robust rally in global markets. This upturn followed recent heavy losses triggered by escalating tensions in the West Asia region, providing a much-needed respite for investors.
Sharp Gains Break Losing Streaks
Snapping a four-session losing streak, the 30-share BSE Sensex surged by 899.71 points or 1.14 per cent to close at 80,015.90. During the trading session, the index climbed as high as 1,187.64 points or 1.50 per cent, reaching an intraday peak of 80,303.83. Similarly, the NSE Nifty ended higher, gaining 285.40 points or 1.17 per cent to settle at 24,765.90, breaking its three-day decline.
Top Performers and Lagging Stocks
Among the Nifty50, top gainers included Adani Ports SEZ with a rise of 4.53 per cent, L&T at 4.03 per cent, and Hindalco with 3.60 per cent. Other notable performers were NTPC, RIL, and Coal India, all posting gains above 3 per cent. On the downside, Tech Mahindra led the losers with a decline of 1.33 per cent, followed by HCL Tech and Kwality Wall’s. The BSE Sensex mirrored this trend, with Adani Ports SEZ and L&T also topping the gainers list, while Tech Mahindra and HCL Tech were among the laggards.
Broader Market and Sectoral Performance
Broader markets showed positive momentum, with the BSE smallcap index advancing 1.74 per cent and the midcap index gaining 1.36 per cent. Sectoral indices displayed widespread gains, led by services which rose 2.84 per cent, followed by utilities at 2.58 per cent, and power at 2.41 per cent. Other sectors such as metal, industrials, auto, realty, energy, and commodities also posted increases above 1.5 per cent. However, Information Technology and BSE Focused IT were the only sectors to end in negative territory.
Market Sentiment and Expert Insights
"Indian equity markets ended the session with over 1 per cent gain, managing to snap a sharp multi-day losing streak. With the Middle East conflict entering its sixth day, uncertainty over whether the situation will move toward resolution or further escalation kept market participants cautious, resulting in a consolidation-driven trading session. The extreme panic that characterised previous sessions began to ease, reflected in India VIX plunging more than 15% from recent highs," said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, as quoted by PTI.
Global Market Influence and Institutional Activity
Asian markets contributed to the positive sentiment, with South Korea's Kospi rebounding sharply by 9.63 per cent. Japan's Nikkei 225, China's Shanghai SSE Composite, and Hong Kong's Hang Seng index also closed with gains. European markets were trading higher, while US markets had ended Wednesday’s session in positive territory. On the institutional front, Foreign Institutional Investors (FIIs) sold equities worth Rs 8,752.65 crore on Wednesday, whereas Domestic Institutional Investors (DIIs) bought stocks worth Rs 12,068.17 crore, according to exchange data.
Market Breadth and Volatility
On the BSE, 2,803 stocks advanced, while 1,453 declined and 141 remained unchanged, indicating a bullish bias in the broader market. The decline in India VIX, which measures market volatility, by over 15 per cent from recent highs, underscored the easing of panic among investors, aligning with the overall recovery in equity indices.
