The benchmark indices **staged a sharp recovery, erasing all intraday losses and snapping a four-session losing streak, with the Sensex jumping 700 points to close at 74,544 and the Nifty 50 gaining 57 points to end the session at 23,462. This represents a significant recovery from the day's lows, with the Sensex gaining 200 points from its intraday low during the afternoon session. During the morning session, the indices opened in the red with the SENSEX declining as much as 0.61% to touch an intraday low of 73,815.12 and the NIFTY50 reaching the session's low of 23,229.15. The recovery was primarily driven by buying in IT stocks, with the top gainers in the NIFTY50 including TCS, Infosys, HCL Technologies, Tech Mahindra, and Trent. On the contrary, NTPC, Power Grid Corporation of India, Larsen & Toubro, Axis Bank and Cipla were among the top losers. In the broader market, the Nifty Midcap 100 and Nifty Smallcap 100 indices also closed in the green, while the market breadth remained positive with 1,989 stocks advancing against 1,137 declining on NSE. As per SBI Securities, this marks the third consecutive session markets have witnessed a recovery from the 23,250-23,150 zone, with the India VIX sharply plunging from morning highs to slip into the red at 16.18.
Falling oil prices, a strengthening rupee, and potential scrapping of capital gains tax on FPI investments in government securities boosted investor confidence on Thursday's volatile trading session. According to The Economic Times, India may scrap capital gains tax on FPI investments in government securities, with the Cabinet approving the promulgation of an ordinance to amend the Income Tax Act. Foreign investors have been bearish on Indian markets recently, with FIIs net selling Indian shares worth ₹5,617 crore on Wednesday, and net selling Indian equities worth more than ₹39,625 crore in just four consecutive sessions. Middle East tensions de-escalation hopes also supported market sentiment, though caution remains warranted as Iran struck Kuwait's airport and US launched retaliatory strikes near the Strait of Hormuz. Oil prices fell as several tankers have reportedly been able to pass through the Strait of Hormuz in recent weeks, though traffic remains a fraction of pre-war levels. Bond yields cooled down slightly, providing additional support to market sentiment.
IT stocks emerged as the biggest star on Tuesday's trade, with the Nifty IT index jumping more than 4% to lead sectoral gains for the third consecutive session. The strong rally in the IT index has been led by TCS shares rallying nearly 7% to lead gains on Sensex, Infosys shares jumping more than 5%, and HCL Technologies shares surging over 4%. Most sectors are trading positively, with gains led by IT which is up over 4%, followed by Realty and PSU Bank, while Pharma is down by 1%. The NSE's India VIX, a gauge of the market's expectation of volatility, tumbled more than 7% to 15.32, indicating reduced market uncertainty. In the broader markets, the Nifty Smallcap 100 gained 0.40% as volatility reduced, while sectorally, the Nifty IT index rose 4.23% and the Nifty Financial Services Ex-Bank declined 0.92%. Among individual stocks, in the 30-share BSE Sensex, top gainers included TCS, Infosys, HCLTech, Adani Ports and TechMahindra, while laggards were Tata Steel, Sun Pharmaceuticals, Bajaj Finance, UltraCement and ICICI Bank. Notably, mid-tier IT companies such as Coforge, LTIMindtree and Mphasis also saw gains during the session, while Tech Mahindra, Wipro and Oracle Financial Services Software added to the sector's positive momentum. Infosys advanced as it partnered with Germany-based Handelsblatt Media Group to launch an AI-powered editorial engine to automate editorial workflows to accelerate content delivery and drive deeper reader engagement.
The Nifty Consumer Durables index emerged as a standout performer, surging 1.86% to 35,309.60, marking a significant turnaround from its 0.85% decline in the previous trading session. Voltas led the sector gains with a 5.65% surge, followed by Blue Star advancing 4.31%, while PG Electroplast gained 3.18%, Titan Company rose 1.79%, Kalyan Jewellers India increased 1.59%, Amber Enterprises India advanced 1.57%, Dixon Technologies (India) climbed 1.28%, Bata India rose 0.74%, and LG Electronics India gained 0.58%. On the downside, Whirlpool of India declined 0.81% and Kajaria Ceramics fell 0.50%. This strong performance in the consumer durables sector added momentum to the broader market recovery and contributed to the positive sentiment across multiple sectors.
The Nifty FMCG index rose 0.72% to 48,471.45, recovering from its 1.16% decline in the previous trading session. Radico Khaitan led the sector gains with a 1.95% surge, followed by Dabur India advancing 1.46% and Marico rising 1.32%. Other notable performers included Tata Consumer Products up 1.28%, United Breweries gaining 1.03%, ITC advancing 0.92%, Britannia Industries up 0.78%, Hindustan Unilever rising 0.74%, Godrej Consumer Products advancing 0.51%, and Nestle India gaining 0.35%. On the downside, Patanjali Foods declined 0.6%, Varun Beverages fell 0.4%, and United Spirits edged lower by 0.39%. This strong performance in the FMCG sector demonstrates broad-based recovery across consumer-focused industries.
SBI Securities sees support at 74,000 on the downside while resistance is placed at 74,800 on the upside for the Sensex. The brokerage noted that banking stocks continue to relatively outperform ahead of the RBI monetary policy scheduled tomorrow, with the rupee expected to trade within a range of 95.25–96.25 in the near term. The next major reaction in the currency market is likely to come from the RBI policy decision on 5 June, where participants will closely watch the central bank's stance on inflation, liquidity, and currency stability. Despite ongoing delays in a Middle East truce, global sentiment remained stable, highlighting resilience in risk appetite. The market's recovery from the 23,250-23,150 zone for the third consecutive session demonstrates sustained investor confidence, with the India VIX plunging into the red at 16.18 indicating reduced market uncertainty.
