Indian equity markets witnessed strong gains with the S&P BSE Sensex closing at 75,399, rising 790 points or 1.1% and the NSE Nifty 50 index settling 277 points or 1.18% higher at 23,689.60 as of Thursday's close. According to Business Standard, the benchmarks rebounded after four sessions of losses, aided by gains in banking stocks and improving global sentiment. The sharp upswing added more than ₹4 lakh crore to the total market capitalisation of companies listed on the BSE, pushing the overall valuation closer to ₹463 lakh crore. The index opened higher but slipped into negative territory in late morning deals before value buying in telecom and banking shares helped pare losses. Market breadth remained positive with 2,107 stocks advancing, 2,076 declining and 190 remaining unchanged on the BSE. Broader markets also participated in the recovery, with the Nifty Midcap 100 index rising 1.1% while the Nifty Smallcap 100 ended largely flat.
Fifteen of the 16 major sectoral indices closed in the green, with Pharma and healthcare emerging as the top-performing sectors, with the Nifty Pharma index surging 2.80% and the Nifty Healthcare index gaining 2.63%. The Nifty Metal index climbed 2.11% while the Nifty Infrastructure index rose 1.02%. Banking counters moved higher with the Nifty Bank index advancing 1.57% to 54,128.95, with the Nifty PSU Bank index closing at ₹1,435.00, up 1.57%. Banking stocks led the gains with HDFC Bank climbing 2.7% and snapping a five-session losing streak, while the Top 10 Banks index rose 1.40%, the PSU Bank index and Private Banks Index both gaining 1.38% each. However, IT stocks bucked the strong market trend, hitting fresh three-year lows with the Nifty IT index declining 2%, extending its four-session fall to nearly 7% amid concerns over the impact of generative artificial intelligence on earnings growth.
Bharti Airtel emerged as the biggest gainer, rallying 5.3% after the telecom carrier's annual revenue crossed the ₹2 lakh crore mark for the first time. As per Rediff Money, Eternal rose by 3.32% while HDFC Bank advanced 2.67%, emerging as the major contributor to the Sensex gains. Other notable gainers included Adani Ports, Sun Pharmaceuticals, Bajaj Finance, Mahindra & Mahindra, NTPC, Kotak Mahindra Bank, Titan, Trent, UltraTech Cement, ITC and State Bank of India. On the downside, Infosys, Tech Mahindra, HCL Technologies, Tata Consultancy Services, Hindustan Unilever, Axis Bank and Maruti Suzuki India ended lower. The telecom sector's strong performance was driven by the milestone achievement of crossing the ₹2 lakh crore revenue mark, marking a significant milestone for the industry. State-run explorer Oil India added 2.1% on stronger earnings, contributing to the sector's positive momentum.
The Nifty PSU Bank index advanced 1.57% to 6,191.95, marking a significant recovery after declining 7.09% over the last five trading sessions. As reported by Business Standard, major PSU banks led the gains with Bank of Baroda up 1.89%, Bank of India rising 1.49%, Indian Bank gaining 1.36%, Union Bank of India advancing 1.13%, Punjab National Bank up 0.9%, Punjab & Sind Bank surging 0.71%, State Bank of India rising 0.69%, Indian Overseas Bank climbing 0.48%, UCO Bank gaining 0.43%, and Canara Bank up 0.38%. The recovery was supported by expectations that the RBI may continue supportive liquidity measures amid global uncertainty and improved investor participation in domestic financial assets.
Global sentiment improved after Chinese President Xi Jinping said trade discussions with the US were making progress during a summit with US President Donald Trump. According to a White House readout, both leaders also agreed that the Strait of Hormuz must remain open to ensure uninterrupted energy flows. However, investor sentiment remained cautious amid persistent challenges. Foreign portfolio investors have sold a record ₹2.2 trillion worth of Indian equities so far this year, adding pressure on domestic markets and the rupee, which weakened to a fresh record low of 95.9 against the dollar. Vinod Nair, Head of Research at Geojit Investments, noted that Indian equities recovered despite continued pressure from currency weakness and rising crude oil prices. "Indian equities staged a counterintuitive recovery from intraday lows and ended higher despite the rupee hitting a record low and crude remaining elevated," Nair said. Siddhartha Khemka, head of research at Motilal Oswal Financial Services, said near-term risks continue to remain elevated despite the recent recovery. "Persistent foreign outflows, elevated crude oil prices (around $105 per barrel), and the Indian rupee slipping to fresh record lows continue to pose key macro risks for the domestic market," he noted.
