Markets rebound: Sensex reclaims 80,000, Nifty at 24,765; key reasons

The broader market mirrored the gains in the frontline indices as both Nifty Midcap 100 and Nifty Smallcap 100 surged more than 1.5 per cent each

Stock market rally today: Stock market benchmark indices Sensex and Nifty 50 gained more than 1 per cent each today, tracking a rebound in global peers after reports said that Iran has conditionally offered to abandon its nuclear programme, raising hopes of de-escalation in the ongoing US/Israel–Iran tensions.  

The fag-end buying helped the 30-share BSE Sensex to reclaim 80,000 mark at close. It settled 899.71 points or 1.14 per cent higher at 80,015.90. Likewise, the Nifty 50 index surged 285.40 points or 1.17 per cent to end at 24,765.90.

 

On the sectoral front, all the indices traded positive barring the Nifty IT. The Nifty Metal and Nifty Consumer Durables gained more than 2 per cent each. The Nifty Bank index, which tracks the movement of 14 listed banks, climbed 300.60 points or 0.51 per cent to finish the session at 59,055.85.

 

The broader market outperformed the headline indices as both Nifty Midcap 100 and Nifty Smallcap 100 gained more than 1.5 per cent each. India VIX, the fear gauge index, eased 15.5 per cent to 17.8. 

 

Markets rebound: Key reasons 

  Iran hints at abandoning nuclear programme: The northward movement came after Majid Takht-Ravanchi, Iranian Deputy Foreign Minister, said that Iran is ready to abandon its nuclear programme on the condition that the United States presents a satisfactory alternative offer, according to media reports.

 

Buying in heavyweights: The rally was further supported by strong buying across index heavyweights, including Reliance Industries, Larsen & Toubro, and HDFC Bank. L&T was up 4 per cent, followed by RIL which moved 3.3 per cent higher, and HDFC Bank rose 1 per cent. Among other Sensex constituents, Adani Ports advanced 4.5 per cent, BEL climbed 3 per cent, and IndiGo was up 2.9 per cent.

 

Nifty technical view: Hitesh Tailor, technical research analyst at Choice Broking, said that from a derivatives standpoint, the bounce is largely supported by short covering and improving options positioning. The Nifty Put–Call Ratio had slipped to lower levels, reflecting excessive pessimism, which typically triggers a tactical pullback. As the index held above crucial support zones around the 24,100–24,300 range, fresh put writing and unwinding of bearish positions emerged, indicating traders’ confidence that immediate downside may remain limited.

 

Additionally, strong domestic institutional buying has helped stabilise the market despite continued FII caution. While elevated crude prices remain a macro headwind for India, the current up move is largely a technical mean-reversion rally supported by derivatives positioning and selective value buying at lower levels.  Rupee recovers: Rupee recovered from its lowest level and gained 52 paise to trade at 91.55 against the US dollar, tracking positive momentum in domestic equity markets. The recovery comes a day after the Indian currency declined to 92.16, breaching its previous all-time low of 91.9875 per dollar hit in late January. 

  Global markets rally: The rally in Indian equity markets mirrored gains in global peers on Thursday, as investor sentiment improved following overnight gains on Wall Street and easing concerns over rising oil prices. In the Asia-Pacific region, markets rebounded after several sessions of steep losses. South Korea’s Kospi settled 9.63 per cent higher, recovering from its worst session and marking its strongest single-day performance, according to LSEG data. Japan’s Nikkei 225 closed 1.90 per cent higher after declining 3 per cent in the previous session, while Australia’s S&P/ASX 200 rose 0.44 per cent.

 

Overnight in the US, equities advanced. The Nasdaq Composite gained 1.29 per cent, the broader S&P 500 rose 0.78 per cent, and the Dow Jones Industrial Average added 0.49 per cent. Oil prices retreated amid developments related to the US-Israeli conflict involving Iran, while concerns over a potential US economic slowdown eased.