The benchmark equity indices snapped their recent losing streak on Thursday, with the Nifty ending a seven-session decline and the Sensex reversing a seven-day fall. According to reports from The Hindu BusinessLine and CNBC TV18, the Nifty rose 154 points, or 0.64 per cent, to settle at 24,232, while the Sensex gained 628 points, or 0.82 per cent, to close at 77,538. During the trading session, the Sensex surged 701.43 points, or 0.91%, to 77,611.11 at its intraday high. This recovery came after a prolonged period of weakness in both indices, with markets finding much-needed relief after the US Treasury stepped in to contain the surge in global bond yields. The total market capitalisation of BSE-listed firms rose by ₹2.7 trillion to ₹491 trillion, while the market breadth remained positive with 3:2 advance-decline ratio, as nearly 40 Nifty stocks closed higher according to CNBC TV18. The rupee also snapped its three-day losing streak, gaining 5 paise to close at 95.70 per dollar compared to its previous close of 95.76, as the greenback slid to multi-month lows against major currencies. Investors' wealth rose by ₹2.71 lakh crore on Thursday, recouping nearly half of the ₹5.46 lakh crore loss recorded during the preceding seven sessions, according to The Financial Express.
The Nifty Bank index led the market recovery, advancing 256 points to 57,496, followed by Midcap index gaining 263 points to 63,672, as reported by CNBC TV18. The Nifty Media index led the market recovery, rising 2%, followed by Realty which advanced 1.4%, as reported by The Hindu BusinessLine. Private banking and IT stocks also witnessed significant buying interest, providing strong support to the benchmark indices. However, the Nifty PSU Bank index slipped into the red, posting the least gains among major sectoral indices. Among individual stocks, Eternal, Kotak Mahindra Bank, ITC, Bharti Airtel and Hindustan Unilever were among the top Nifty gainers, while Hindalco was the top laggard despite aluminium prices moving higher. Auto stocks recovered from recent weakness and ended largely higher, with Maruti Suzuki among the top gainers, according to CNBC TV18. Midcap IT stocks also continued to outperform, with Coforge and Persistent Systems gaining around 3% each. Sugar stocks extended their recent rally, rising as much as 20% amid higher sugar prices, with LIC gaining 2% after the stock exited the F&O ban. MCX and Muthoot Finance surged 4-5% after gold prices rose sharply, while Premier gained 4% following a positive outlook for FY28 and Crompton rose 3% after announcing its FY29 and FY31 targets at its Investor Day.
Foreign institutional investors turned net sellers of ₹583.36 crore on Thursday, even as domestic institutional investors continued buying with net purchases of ₹3,537.71 crore, according to provisional exchange data from CNBC TV18. The shift in FII flows came a day after foreign investors had returned to buying, with net purchases of ₹407.99 crore on Wednesday, when DIIs also remained buyers, picking up equities worth ₹3,973.72 crore. Together, the two investor groups recorded combined net buying of ₹4,381.71 crore on Wednesday. This divergence in investor sentiment highlights the continued domestic confidence despite foreign selling pressure. Foreign portfolio investors sold shares worth ₹583.36 crore, while domestic institutional investors purchased shares worth ₹3,537.71 crore, according to exchange data. The recovery was driven by an unexpected lifeline from across the Pacific, a US Treasury intervention that pulled long-term bond yields lower, weakened the dollar, and revived risk appetite across global markets. The intervention has dragged down the dollar, which, along with a firmer rupee and easing yield pressures, boosted the attractiveness of emerging markets, said Vinod Nair, Head of Research at Geojit Investments Limited.
According to Hariselvan Radhakrishnan, Founder & CEO of HST Wealth cited by The Hindu, immediate support for Nifty is placed at 24,100, followed by 24,000, while resistance is seen at 24,300 and 24,575. The Nifty faces an immediate hurdle at 24,290-24,320, while 24,130-24,100 remains a crucial support zone. The Nifty will need to decisively clear the 24,300–24,375 resistance band, where the 50-day EMA also sits, to negate the prevailing short-term downtrend. A sustained close above 24,575 by week's end would further strengthen the technical structure and open the door toward 25,000–25,150. As per CNBC TV18, Nifty's ability to sustain above the crucial 24,000 support zone remains important, as the level coincides with the 61.8% retracement of the previous upswing and an upward-sloping trendline connecting the April, June and July swing lows on the daily chart. Sustained buying above 24,375 will be crucial to negate the prevailing short-term downtrend and open the door to further recovery, with the 24,000-24,050 band likely to remain a key support area while 24,300-24,375 may act as immediate resistance. From a technical perspective, 24,150 is the immediate support, followed by the stronger 24,040-24,000 zone, while resistance is likely at 24,250-24,350, followed by 24,400-24,450. The Nifty reclaimed its 50-day DEMA at 24,188 and 100-day DEMA at 24,203, signalling an improvement in near-term momentum, though it continues to trade below its 20-day EMA at 24,304 and 200-day EMA at 24,377, suggesting the broader short-term trend has yet to turn decisively positive.
As reported by The Hindu BusinessLine and CNBC TV18, the broader market sentiment improved as investors stepped in to buy beaten-down stocks following the recent correction, helping the benchmark indices regain some of their lost ground. Fresh foreign fund inflows of ₹407.99 crore on Wednesday added to the markets' optimism, according to exchange data. The recovery was driven by an unexpected lifeline from across the Pacific, a US Treasury intervention that pulled long-term bond yields lower, weakened the dollar, and revived risk appetite across global markets. The intervention has dragged down the dollar, which, along with a firmer rupee and easing yield pressures, boosted the attractiveness of emerging markets, said Vinod Nair, Head of Research at Geojit Investments Limited. However, Brent crude remained elevated near $94 per barrel amid continuing geopolitical tensions and uncertainty surrounding the Strait of Hormuz, keeping inflation and external-sector risks on investors' radar, according to Ajit Mishra, SVP – Research, Religare Broking. Foreign portfolio investors sold shares worth ₹583.36 crore, while domestic institutional investors purchased shares worth ₹3,537.71 crore, according to exchange data. The session also saw the release of the RBI's August Monetary Policy Committee minutes, which some research firms flagged as among the most hawkish in the past year, with 5-6 members leaving the door open to future tightening. The near-term outlook is likely to hinge on the direction of global yields, energy prices and geopolitical developments, with sustained stability needed to keep earnings momentum and foreign inflows intact. Going forward, geopolitical developments in West Asia and the upcoming address by Federal Reserve Chairman Kevin Warsh at next week's Jackson Hole Economic Symposium will guide market direction. According to CNBC TV18, the index staged a recovery after finding support at a critical level, with Nifty closing meaningfully higher than the previous session for the first time in 13 sessions, indicating a significant shift in market sentiment.
