Indian equity markets rebounded sharply on Thursday, with the Sensex gaining over 400 points and the Nifty trading above the 24,200 mark, as falling US bond yields and short-covering improved investor sentiment.
Both benchmark indices opened with a sharp gap-up. The Sensex opened at 77,468.45 against its previous close of 76,909.68 and touched a high of 77,494.79 in early trade. The Nifty opened at 24,225.45, compared with its previous close of 24,078.30, and hit the same level during the session.
At the time of reporting, the Sensex was trading at 77,392.32, up 482.64 points, or 0.63 per cent, while the Nifty was at 24,191.45, gaining 113.15 points, or 0.47 per cent.
The gains came after the benchmark indices had witnessed a prolonged losing streak, with analysts attributing Thursday’s recovery to short-covering, the decline in US bond yields and improving sentiment across several sectors.
All sectoral indices traded in positive territory, with Nifty IT emerging as the top performer, gaining more than one per cent. Broad-market indices were also trading in the green.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the rally had fundamental support from revenue and earnings growth.
“Segments like CDMO, precision engineering and power infrastructure are doing very well, and the management commentaries are very positive,” he said, adding that although some of the positive developments in these segments were already priced in, there was still room for further appreciation.
Vijayakumar said the market appeared set for a short-term reversal after declining steadily over the previous 12 trading sessions.
“The market is in oversold territory, and a mild rally triggered by short-covering is likely,” he said, adding that the decline in US bond yields indicated positive potential for equity markets globally.
He also noted that while large-cap stocks remained subdued, mid- and small-cap stocks were performing relatively better.
Among individual stocks on the NSE, Shriram Finance, Infosys, Bajaj Finance, Eternal, Kotak Bank, Wipro, HDFC Bank, Bharti Airtel, Hindustan Unilever, Axis Bank, TCS, Cipla, L&T, BEL, Trent, Asian Paints, SBI Life, IndiGo and Tata Steel were among those trading higher.
Grasim, Bajaj Auto, M&M, Hindalco and ONGC were among the major laggards.
On the BSE, Infosys, Bajaj Finance, Eternal, Kotak Bank, Hindustan Unilever and IndiGo were among the major gainers, while Sun Pharma and M&M were among the major losers.
Market analyst Vipin Dixena said the market was attempting to break its seven-session losing streak. However, elevated crude oil prices and geopolitical uncertainty continued to pose risks.
He also noted that continued buying by foreign institutional investors remained a positive factor for the Indian market.
Technically, the Nifty remains at a crucial level, with the 24,000 zone emerging as key support and 24,200-24,250 as the immediate resistance area.
“A sustained move above 24,200 would be the first indication that the recent correction may be losing momentum, whereas failure to hold 24,000 could reopen the downside towards 23,850-23,750,” Dixena said.
In the commodity market, Brent crude was trading at around USD 91.95 per barrel, while crude oil was at around USD 84.53 per barrel. Gold was trading at approximately USD 4,497.95 at the time of reporting.
-ANI
