Sensex stages a stunning comeback
Mumbai: Benchmark stock indices rallied sharply on Thursday, with the Sensex surging 1,533.72 points, or 2.11 per cent, to close at 74,315.61, while the Nifty climbed 374.65 points, or 1.66 per cent, to 22,997.35, its highest level since September 25.
The rebound was led by heavy buying in information technology, banking and select heavyweight stocks, including Reliance Industries, amid easing crude oil prices and a firmer rupee.
Tech Mahindra jumped 4.61 per cent, ICICI Bank gained 4.17 per cent, Reliance Industries rose 4.03 per cent, Bharti Airtel advanced 2.94 per cent, while HCLTech, HDFC Bank and TCS also posted strong gains. Bharat Electronics, Trent and Hindustan Unilever were among the laggards.
Reliance Industries rallied after its digital and telecom arm, Jio Platforms, announced an IPO price band of Rs 1,065-1,119 per share. The offering could raise Rs 30,213 crore at the upper end, making it India’s largest IPO. Brent crude fell 2.34 per cent to $103.6 a barrel, easing concerns over imported inflation and pressure on India’s external balances.
“Indian equities rallied sharply as concerns over stretched AI valuations and higher US inflation triggered a sell-off across tech-heavy global markets, improving India’s relative appeal and encouraging rotation toward domestic large-cap technology, private financials and defensive heavyweights,” Vinod Nair, Head of Research at Geojit Investments, said.
Correcting bond yields, rupee stability, softer crude prices and hopes of a possible reconsideration of equity taxation further supported sentiment, he added.
Ponmudi R, CEO of Enrich Money, said buying gathered pace through the session, erasing Wednesday’s losses. IT stocks led the advance, while private banks, automakers and oil and gas companies also attracted buying.
Foreign institutional investors sold equities worth Rs 1,857.44 crore on Wednesday, according to exchange data.
The rally came despite sharp losses across Asian markets. South Korea’s Kospi plunged 7.57 per cent and Japan’s Nikkei 225 fell 4.90 per cent, while European markets traded mixed. US markets had ended lower on Wednesday.
On Wednesday, the Sensex had declined 251.89 points and the Nifty lost 99.25 points. Buying in IT stocks: Tech Mahindra, HCLTech and TCS advanced, supporting the broader rally.
Private bank strength: ICICI Bank and HDFC Bank led financial stocks higher.
Reliance and Jio IPO: Reliance gained 4.03% after Jio Platforms announced its IPO price band.
Softer crude oil: Brent fell 2.34% to $103.6 a barrel, easing inflation and external-balance concerns.