Benchmark indices staged a strong recovery on Thursday, with the Sensex gaining 279 points to close at 76,854.32 and the Nifty 50 recovering to near 24,000 levels. According to latest market reports, the Nifty Bank advanced 0.57% to 57,497.85, while the Nifty Financial Services index gained 0.60%, leading the broader market recovery. The Nifty Midcap 100 gained 0.29% and the Nifty Smallcap 100 rose 0.46%, indicating widespread participation in the recovery. This marks a significant turnaround from Wednesday's decline when BSE Sensex closed at 76,570.35, down 373.93 points or 0.49% and the Nifty 50 ended at 23,914.45, declining 141.35 points or 0.59%. The recovery comes as Brent crude was trading at $95.11 a barrel, up 0.49%, while WTI crude was at $90.51 a barrel, up 0.32%. The rise in crude prices had previously weighed heavily on investor sentiment, but markets appear to be finding resilience amid the current global headwinds.
Banking stocks remained the standout performers with Adani Ports leading Nifty gains at 1.66%, rising to ₹1,703.70. As reported by latest market data, Power Grid gained 1.03% and HDFC Bank advanced 1% among the early gainers. Ponmudi R, CEO of Enrich Money, noted that Bank Nifty opened with a gap-up near 57,498, reclaiming its 20-day and 50-day EMAs, with a sustained move above 57,600 potentially pushing the index towards the 58,000 psychological resistance zone. Bajaj Finserv gained 1.02%, Power Grid rose 1%, NTPC increased 0.96%, and Titan gained 0.70%. However, HDFC Bank and M&M declined 1.56% each, while State Bank of India fell 1.22% and IndiGo declined 1%. According to The Hindu BusinessLine, Nifty Private Bank declined 0.56%, with Nifty FMCG falling 0.47% and Nifty Consumer Durables declining 0.31%. Nifty Healthcare fell 0.24%, while Nifty Metal declined 0.25% and Nifty Pharma was almost flat, falling just 0.04%. The relative strength in oil and gas stocks came as investors looked at the possibility of higher realisations for upstream oil and gas companies following the rise in crude prices.
The broader market recovery was broad-based with private banks, PSU banks, financial services, media and metals among the notable gainers, while the Nifty Oil & Gas index was marginally lower. According to latest market reports, Tech Mahindra, Sun Pharma, HCLTech and Maruti were among the early laggards. This represents a significant turnaround from Wednesday's sectoral weakness when Asian Paints fell 1.61%, IndiGo declined 1%, and auto stocks were under pressure with the Nifty Auto index falling 1.79%. HCL Technologies dropped 1.49%, BEL fell 1.33%, and Infosys declined 1.28%. The recovery in oil and gas stocks comes as investors look at the possibility of higher realisations for upstream companies following the rise in crude prices. Nifty Media declined 1.75%, Nifty IT fell 1.25%, and Nifty Financial Services down 0.72% on Wednesday, but these sectors are showing improvement in Thursday's session. However, IT emerged as the weakest performer on Thursday, with FMCG, pharma and auto stocks also trading under pressure, indicating some sector-specific challenges despite the overall market recovery.
The broader market reflected the recovery with Nifty Midcap 100 gaining 0.29% and Nifty Smallcap 100 rising 0.46%, indicating widespread participation in the market bounce. According to latest market data, 2,436 stocks were advancing against 1,673 declining, with 234 unchanged, as reported earlier. 155 stocks hit 52-week highs while 82 touched 52-week lows. India VIX declined 1.34% to 11.34 by the end of Wednesday's session, suggesting that some of the early volatility had eased. The market managed to recover from its early lows as buying emerged in select banking, oil and gas and large-cap stocks. Tracking negative global cues, domestic equities saw volatile trade, with mid-caps bearing the brunt of the selling pressure, as noted by Vinod Nair, Head of Research at Geojit Investments Limited. The rupee had remained resilient despite the pressure from crude, supported by RBI dollar sales and strong FCNR(B) inflows.
The market recovery comes despite ongoing global factors including the deepening global bond rout amid escalating West Asia tensions and bets that central banks will need to tighten monetary policy. Higher crude prices have renewed fears that inflation could remain elevated, potentially limiting the room available to central banks to cut interest rates. Markets have also been worried about the possibility of a near-term US rate hike. The deepening global bond rout, amid escalating West Asia tensions and bets that central banks will need to tighten monetary policy, has gripped investor sentiment in fear, according to Nair. Higher US interest rates and bond yields can make US assets more attractive relative to emerging markets such as India, affecting global capital flows and putting pressure on emerging-market equities. Despite Wednesday's decline, domestic economic indicators continue to provide some support to Indian equities, with recent GDP data, GST collections, credit growth and automobile numbers pointing to continued strength in the Indian economy.
