Benchmark indices Sensex and Nifty rebounded strongly to close significantly higher, supported by value buying and short covering after the recent sharp correction. The 30-share BSE Sensex closed 879.09 points or 1.23 per cent higher at 72,472.33. During the day, the benchmark hit a high of 72,669.20 and a low of 71,739.49, gyrating 929.71 points. Similarly, the 50-share NSE Nifty gained 288.65 points or 1.30 per cent to close at 22,520.45. Similarly, the broader market ended the session in green. The BSE MidCap Select Index jumped 272.60 points, or 1.59 per cent, while the BSE SmallCap Select Index added 49.71 points, or 0.56 per cent.
A pullback in crude oil prices provided much-needed macroeconomic relief, easing some of the inflation concerns that had weighed on markets in the previous session. Reduced fears of an immediate escalation between the US and Iran, alongside some moderation in global bond yields, also helped restore risk appetite.
On the sectoral front, IT led the recovery, while banking, FMCG and auto also witnessed buying interest. Nifty IT was the biggest gainer, up 3.02 per cent, followed by Nifty FMCG, up 2.20 per cent.
“IT stocks led the recovery despite the U.S. suspension of major technology companies from the PERM programme. Investors appeared reassured by the clarification that the restriction affects the employment-based green-card process rather than existing H-1B employment, limiting the immediate operational fallout. The rebound can continue if the Nifty converts 22,600 into support and Bank Nifty holds above its weekly average. However, with crude still elevated and global yields restrictive, failure to secure this follow-through would keep the market range-bound and vulnerable to renewed selling,” said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.
Top gainers and losers
Among the 30 Sensex firms, ITC, TCS, Adani Ports, Infosys and HCL Tech were the major gainers, with ITC up 4.78 per cent today. On the flip side, only Reliance lagged. Reliance shares fell 0.55 per cent today.
Rupee gains after three days of weakness
Meanwhile, the Indian rupee appreciated after three days of weakness, strengthening against the US dollar in tandem with its broader Asian peers.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
