Indian equity benchmarks recovered on February 20, a day after both indices had fallen more than 1 percent, as selective buying in heavyweights, steady earnings trends and improved valuations lifted sentiment.
The 30-share Sensex climbed 317 points, or 0.38 percent, to close at 82,814.71. The Nifty 50 rose 117 points, or 0.46 percent, to settle at 25,571.25.
Broader markets were mixed:
BSE 150 MidCap index: up 0.44 percent
BSE 250 SmallCap index: down 0.19 percent
The total market capitalisation of BSE-listed companies increased to ₹467 lakh-crore from ₹465 lakh-crore in the previous session, adding nearly ₹2 lakh-crore to investor wealth in a single day.
After Thursday’s sharp correction, traders rushed to cover short positions in select large-cap stocks, triggering a rebound.
Accumulation was seen in Reliance Industries, Larsen & Toubro and Bajaj Finance.
Analysts said the medium-term outlook remains healthy amid expectations of earnings recovery.
Stable growth-inflation dynamics continue to support sentiment.
The rupee ended at 90.9825 per dollar:
Down 0.3 percent for the day
Down 0.4 percent for the week
Crude oil prices crossed $72 per barrel, a six-and-a-half-month high, pressuring the currency. However, likely intervention by the Reserve Bank of India prevented the rupee from breaching the key 91 per dollar mark, easing concerns over imported inflation and macro stability.
The December quarter earnings season ended slightly better than expected, reinforcing hopes that the worst of the earnings slowdown may be over.
According to YES Securities:
NSE 200 revenue (excluding financials and oil marketing companies) grew 11.9 percent year-on-year in Q3.
This was significantly higher than the average run rate of about 7.8 percent over the previous eight quarters.
“Amid multiple global uncertainties, the resilience of the Indian economy and recovery in corporate earnings, as reflected in Q3 numbers, remain key positives,” said VK Vijayakumar of Geojit Investments.
Recent corrections have cooled large-cap valuations, improving the risk-reward balance.
Price-to-earnings multiples have moderated to around 19–20 times, according to PL Capital.
India’s premium to emerging markets has compressed materially.
Brokerages believe this offers a more favourable entry point for medium-term investors as earnings visibility improves.
Gains in banks, metals and FMCG stocks underpinned the rally.
Nifty Bank index: up 0.60 percent
Nifty Metal index: up 1 percent
FMCG index: up 0.70 percent
Top Nifty gainers included Hindalco, Hindustan Unilever, Tata Steel and JSW Steel, signalling broad-based participation in the recovery.
While volatility linked to crude oil prices and currency movements may persist, improving earnings trends and more reasonable valuations are likely to provide near-term support to the market.
