The Nifty staged a significant rebound today, gaining 119.10 points to close at 23,242.10 after two consecutive negative sessions. According to reports from HDFC Securities, the index opened 136 points higher but quickly slipped and corrected nearly 155 points from the early high before recovering sharply in the second half to finish slightly above its opening level. The recovery is being supported by improved market participation, with NSE cash market turnover rising 13% compared to the previous session, indicating enhanced investor participation. The broader market delivered an even stronger performance than the frontline indices, with the Nifty Midcap 100 index climbing 1.35% and the Nifty Smallcap 100 index rising 1.70%, indicating continued appetite for domestic growth-oriented stocks. Market breadth strengthened significantly, as reflected in the BSE advance-decline ratio rising to 1.97, its highest level in a month, with 2,694 stocks advancing against 1,343 declines.
Financial stocks emerged as the biggest drivers of the rally, with investors cheering the RBI publishing guidelines for recently announced measures aimed at attracting foreign currency inflows and supporting the rupee. The Nifty PSU Bank index surged 3.6%, while the Nifty Bank and Private Bank indices climbed 2% and 1.6% respectively. Market participants believe the central bank's concessional swap facility for FCNR(B) deposits and related measures could help improve liquidity and support deposit growth across the banking sector. State Bank of India was among the top gainers on the Nifty, while other major lenders also witnessed strong buying interest. The rally in rate-sensitive sectors such as banks and realty reflected growing confidence that domestic economic conditions remain supportive despite global uncertainties. Among banking sector constituents, ICICI Bank emerged as the top gainer, rising 1.6%, while Kotak Mahindra Bank advanced 1.16% and AU Small Finance Bank gained 0.94%. Other major private banks including IndusInd Bank, IDFC First Bank and Axis Bank also rose up to 1%.
As reported by HDFC Securities, Nifty managed to hold above the previous session's low of 23,070, which is considered a constructive sign and suggests that buyers are still active at lower levels. However, today's recovery is not yet enough to confirm a trend reversal. The index needs a decisive move above the recent swing high of 23,516 to weaken the current downtrend structure and confirm a bullish trend. On the downside, the 23,000–23,100 zone should continue to act as a strong support area in the near term. If this band holds, the pullback can be viewed as a recovery phase rather than a fresh leg of weakness. A break below 23,000 could accelerate declines toward the 22,700–22,800 zone, indicating that the current rebound remains fragile until the index can establish a clearer upward trajectory. According to SBI Securities technical analyst Sudeep Shah, the Bank Nifty continues to sustain above its key 20-day and 50-day exponential moving average (EMA) levels, indicating relative strength. The 55,500-55,600 zone is likely to act as an immediate resistance for the index, with a sustained breakout above 55,600 potentially triggering a sharp upside rally toward 56,200, followed by 56,600 in the short term. On the downside, the 54,800-54,700 zone is expected to provide immediate support.
Real estate stocks also attracted significant investor interest, with the Nifty Realty index rising 1.6% as the sector benefited from improving risk sentiment and expectations that lower interest rates and supportive liquidity conditions could aid housing demand and project execution. Among Nifty constituents, IndiGo, Jio Financial Services, and SBI led the gains, while Titan, ONGC, and NTPC were among the top laggards. Barring Nifty IT and Media, all sectoral indices closed in the green, with PSU Banks, Bank Nifty, and Realty emerging as the key outperformers. Information technology stocks were the notable laggards, with the Nifty IT index ending in the red as investors remained cautious on the sector amid concerns over global growth and the outlook for technology spending in key overseas markets. The Bank Nifty settled 0.14% higher at 55,176.75, extending its outperformance over the frontline indices for the past few sessions, despite retreating over 400 points from the day's peak during the session.
The Indian rupee appreciated by 36 paise to close at 95.35 against the dollar, supported by a risk-on sentiment driven by a weaker US dollar and softer crude oil prices amid easing geopolitical concerns. Additionally, renewed inflows into the debt market, following recent RBI measures, lent further support to the currency. However, benchmark equity indices Sensex and Nifty ended lower in a volatile session on Thursday as investors remained cautious amid rising tensions between the US and Iran. The Sensex declined 150.63 points or 0.2% to settle at 73,832.55, while the Nifty fell 53.35 points or 0.23% to close at 23,161.60, extending losses for a second straight session. With banking stocks regaining leadership and broader markets remaining resilient, Tuesday's session marked a constructive recovery after recent volatility. According to analysts at Bajaj Broking, Bank Nifty has witnessed profit booking over the last two sessions near the neckline of the double-bottom breakout zone of 55,500-55,600, with a decisive move above this level confirming renewed buying momentum and opening the path toward 56,500 levels in the coming weeks.
