Indian stock markets extended their recovery on Thursday, with the Sensex surpassing 77,400 to trade 370.25 points or 0.48% higher at 77,292.89 from its previous close, while the Nifty 50 gained 116.50 points or 0.49% to 24,122.35 at 12:38 pm. The Nifty IT index emerged as the top performer, surging 4.5% to lead the market rally. IT stocks led the charge with Infosys, HCLTech, TCS, Tech Mahindra, Wipro and Bajaj Finserv being the top gainers among Nifty 50 constituents. Top midcap performers included Exide Industries, Coforge, Persistent Systems and Mphasis, rallying 5-7%, while smallcap stocks Zensar Technologies, Tata Technologies, Sona BLW Precision Forgings and Five-Star Business Finance gained 5-12%. The recovery follows Wednesday's sharp rebound where the Sensex climbed 444 points to 76,923 and the Nifty rose 140 points to 24,006, recovering from two consecutive days of decline.
Market breadth remained firmly positive with 2,136 stocks advancing against 1,047 declining on the NSE, as reported by The Hindu BusinessLine. Of the 3,260 stocks traded, 114 touched their 52-week highs while 25 hit their 52-week lows, with 99 stocks locked in the upper circuit and 68 hitting the lower circuit. Broader markets outperformed with the Nifty Smallcap index rising 0.93% and the Nifty Midcap index gaining 0.63%. Top laggards included L&T, Bajaj Auto, Bharti Airtel, BEL and Max Health, while BHEL, GMR Airports, Page Industries and Polycab declined 1-3% in the midcap space. Among the stocks hitting 52-week highs were Delhivery, Inventurus Knowledge, Aegis Logistics, ITD Cementation, Phoenix Mills, Adani Enterprises and Nippon Life AMC, while KPIT Tech, Tata Elxsi, Birlasoft, HCL Tech, TCS, IndiaMART and Infosys hit their 52-week lows. FPIs were net sellers worth ₹312 crore on Thursday, as per provisional data, having offloaded a record $29.46 billion worth of shares so far this year, while domestic institutional investors remained buyers for an eighth straight session.
The market recovery was supported by positive global cues and strong US market performance, with Wall Street concluding its strongest quarter since 2020 and the Dow Jones closing at a record 52,319. As per Axis Direct's Rajesh Palviya, global cues remain constructive with the S&P 500 gaining 0.8% and the tech-heavy Nasdaq climbing 1.5%, while Japan's Nikkei climbed over 1.6% to fresh record highs on AI-driven technology optimism. According to Jatin Gedia, VP Technical Research at Teji Mandi Investment Technologies, the Nifty has now ended lower for three consecutive sessions and is approaching an important support zone that could determine the market's near-term direction. The index is trading close to the lower end of the 23,800-24,200 range, with multiple support parameters including the 20-day moving average at 23,700, the 40-day exponential moving average at 23,815, and the gap area between 23,660-23,820 likely to provide support. Sudeep Shah from SBI Securities notes that the immediate resistance for the Nifty is placed in the 24,130-24,150 zone, with any sustainable move above this zone potentially extending the pullback towards 24,300, followed by 24,450 in the short term. SEBI-registered market analyst Vipin Dixena pointed out that the Sensex continues to face strong rejection near its upper psychological resistance of 77,000 while holding above the 50-EMA, indicating a neutral-to-positive bias. He further stated that a decisive breakout above 77,000 could open the door towards 77,400–77,600, while a break below 76,750 may drag the index towards 76,500. Hitesh Tailor from Choice Equity Broking expects the bullish structure to remain intact as long as key support levels hold, with 76,300–76,400 acting as the immediate support zone and 77,400–77,500 remaining the immediate resistance zone. Aakash Shah from Choice Broking noted that the Nifty Put-Call Ratio rising to 1.13 from 1.02 signals "increased put writing activity and strengthening bullish sentiment," while India VIX declining 2.63% to 13.24 reflects "reduced uncertainty in the market". The immediate trading range for Nifty is expected between 23,850 and 24,300, with a breakout above 24,200–24,300 required to confirm the next leg of the rally.
All sectoral indices traded in positive territory with the Nifty IT index emerging as the top performer after surging 4.5%. On the losing side, L&T, Bajaj Auto, Bharti Airtel, BEL and Max Health were the top laggards among Nifty 50 constituents. Sectorally, realty jumped 3.56% and FMCG (1.76%). Focused IT tumbled 2.53%, IT (1.94%), metal (0.87%), and telecommunication (0.34%). The BSE MidCap Select index edged marginally higher by 0.20% and SmallCap Select index eked out a marginal gain of 0.02%. For Thursday's trading session, market sentiment remains cautious ahead of key global cues, including U.S. tariff developments and expectations around the upcoming U.S. jobs data, which continue to influence risk appetite. Vinod Nair from Geojit Investments noted that "The domestic markets entered the second half of calendar year 2026 (H2CY26) on an optimistic footing as multiple headwinds began to abate, with the anticipated US-India trade agreement, easing West Asia tensions, and benign oil prices emerging as the key drivers of positive sentiment". GIFT Nifty futures were at 24,414, as of 7:43 am, indicating the Nifty 50 could open above Thursday's close of 24,175.7, with the benchmark Nifty 50 and the Sensex rising 1.3% in the last two sessions, mainly supported by a drop in crude oil prices.
GST collections rose 13.9% year-on-year in June to ₹1.95 lakh crore gross, with net collections at ₹1.62 lakh crore after refunds. Import-related revenues surged 34.6%, while domestic GST collections grew a more modest 6.5%. Brent crude is trading near $67–$71 per barrel — near multi-year lows — after its steepest quarterly decline since 2020, driven by easing geopolitical tensions and expectations of ample global supply. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said crude's decline "will further strengthen India's macros and help in achieving higher growth while keeping inflation in check." The auto sector drew fresh attention after June passenger vehicle sales posted 24.1% growth, with Vijayakumar noting the data "indicates that the demand momentum in the economy continues to be strong." The rupee, however, remained under pressure, depreciating 59 paise to close at 95.25 against the US dollar in the previous session — its third straight day of losses — as short covering and a stronger dollar weighed on the currency. Sector-specific developments included positive Q1 business updates from JTL Industries, V2 Retail, and J&K Bank. Adani Energy's board approved raising ₹10,000 crore, adding to corporate activity on Dalal Street. Non-bank lender Bajaj Finance reported new loans booked during the June quarter rose 20% from last year, while assets under management grew 24%. Punjab National Bank reported 11.7% growth in domestic advances during April-June, while deposits rose 8.6%. D-Mart operator Avenue Supermarts posted 15.1% growth in standalone revenue for the first quarter. Consumer goods maker Marico expects consolidated first-quarter revenue to grow in low-twenties percentage range, helped by robust performance across its core, digital and international businesses.
