Indian equities rebounded strongly on Thursday after a recent slump, with both the Sensex and Nifty posting notable gains driven by buying across banking, IT, and energy counters. Investor sentiment improved on the back of easing global cues, moderation in crude oil prices, and renewed interest from institutional investors. Analysts suggest the recovery reflects a combination of bargain-hunting and cautious optimism ahead of key macroeconomic data releases. While volatility is expected to persist, the rebound indicates underlying resilience in the domestic equity market despite global uncertainties.
Market Performance
The BSE Sensex surged more than 500 points to reclaim the 72,000 mark, while the NSE Nifty advanced close to 150 points, ending comfortably above 21,700. Blue-chip stocks led the rally, with financials, IT services, and energy majors witnessing robust buying interest.
Banking shares were among the biggest contributors, supported by healthy credit growth trends and expectations of stable asset quality. IT companies also recovered after recent sell-offs, aided by optimism over U.S. economic stability, which is a key market for India’s technology exporters.
Sectoral Momentum
All major sectoral indices closed higher, signaling broad-based participation in the rebound. The Nifty Bank index gained more than 1 percent, while auto and energy stocks also advanced as investors rotated capital into cyclical sectors. Midcap and small-cap indices mirrored the trend, adding further strength to the overall market performance.
Market participants noted that easing global oil prices provided relief to investors concerned about inflationary pressures. At the same time, expectations that the U.S. Federal Reserve will maintain a cautious stance on rate hikes supported sentiment across Asian markets, including India.
Institutional Flows and Investor Sentiment
Foreign institutional investors (FIIs), who had been net sellers in recent sessions, returned as buyers, lending support to the market rally. Domestic institutional investors (DIIs) also continued their accumulation, underscoring confidence in India’s long-term growth story.
Analysts observed that the rebound was partly driven by bargain-hunting after the recent correction, as investors looked to capitalize on attractive valuations in select sectors. However, they cautioned that volatility could remain elevated due to upcoming macroeconomic indicators, including GDP data and inflation readings.
Outlook
While Thursday’s rebound injected optimism into Dalal Street, analysts advised caution, noting that global uncertainties—ranging from U.S. interest rate moves to geopolitical developments—could influence near-term market trends. Nonetheless, India’s strong economic fundamentals, steady corporate earnings outlook, and structural reforms continue to underpin investor confidence.
For traders and long-term investors alike, the focus remains on selective opportunities in banking, infrastructure, and technology, which are likely to drive momentum as markets navigate through periods of volatility.
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