Indian equities staged a strong rebound on Thursday, with benchmark indices rising sharply after a recent sell-off pushed the market into oversold territory. Short covering, easing geopolitical concerns and a stronger rupee helped lift sentiment.
The Sensex rose 900 points (1.14 percent) to close at 80,015.90, while the Nifty 50 climbed 1.17 percent to 24,765.90. The rally added nearly ₹6 lakh-crore to investor wealth in a single trading session.
Buying interest was visible across market capitalisation segments.
BSE 150 MidCap Index rose 1.44 percent
BSE 250 SmallCap Index gained 1.38 percent
Overall BSE market capitalisation increased to ₹453 lakh-crore from ₹447.2 lakh-crore in the previous session
The gains came after benchmark indices had dropped nearly 4 percent in the past few sessions, prompting investors to step in with value buying.
Several triggers helped markets recover from the recent decline.
Short covering after sharp fall:
Markets had fallen 3,160 points (3.8 percent) over the previous four sessions.
The correction pushed indices into oversold territory, triggering a technical rebound.
Signs of geopolitical easing:
Reports suggested Iran had made conditional offers to the US regarding its nuclear programme.
The development raised hopes of de-escalation in the ongoing US–Iran conflict, improving global risk sentiment.
Stronger rupee:
The rupee strengthened by 54 paise to close at 91.60 per dollar.
The rupee had hit a record low of 92.30 per dollar a day earlier.
According to reports, the Reserve Bank of India intervened aggressively to support the rupee.
Optimism over India–US trade deal:
Market sentiment improved after comments from a senior US official suggested that India and the US could be nearing a trade agreement.
Sector trends:
Value buying emerged in several sectors that had recently corrected.
Gainers:
Metals
Consumer durables
Realty
Auto
Lagging sector:
IT stocks declined, partly due to the strengthening rupee, which typically hurts export-oriented companies.
Top contributors to the rally:
Reliance Industries
Larsen & Toubro
HDFC Bank
Major drags:
ICICI Bank
State Bank of India
Top percentage gainers:
Adani Ports
Larsen & Toubro
NTPC
Reliance Industries
Tech Mahindra
HCLTech
Hindustan Unilever
Market experts believe the rebound could extend if key support levels hold.
Support levels: 24,600 and 24,500 on the Nifty
Immediate resistance: 24,920–24,950
If the Nifty sustains above 24,950, the pullback rally could extend towards 25,100. However, a fall below 24,500 may weaken sentiment and prompt traders to exit long positions.