Markets rebound: Sensex soars 820pts intraday, Nifty at 24,134; key reasons

Stock market rally today: Benchmark indices Sensex and Nifty rebounded on Thursday after a sharp fall in the previous session amid foreign fund inflows and buying in blue-chip stocks. The BSE Sensex made an intraday high of 77,326.65, up 823 points or 1.07 per cent. The Nifty 50 touched a high of 24,134.70, up 255 points, or 1.07 per cent.

 

Earlier on Wednesday, both the benchmarks tumbled more than 2 per cent each on renewed West Asia tension.

 

VK Vijayakumar, chief investment strategist, Geojit Investments, said that there are market indications that things may not deteriorate as feared. "The crisis will reemerge only if the tensions lead to the closure of the Strait of Hormuz again and consequently crude spiking above $ 100. The present futures do not reflect such a pessimistic scenario," he said.

 

 

The BSE Sensex finally closed 238.22 points, or 0.31 per cent higher at 76,741.82. The Nifty 50 went up by 80.75 points, or 0.34 per cent to settle 23,962.80.

 

Among the sectoral indices, the Nifty Realty index jumped more than 3.5 per  cent, followed by Nifty Healthcare, Consumer Durables, PSU Bank, Media, and Nifty Cement -- up more than 1 per cent each. In the broader markets, the Nifty Midcap 100 and Nifty Smallcap 100 outperformed, gaining 1.38 per cent and 1.80 per cent, respectively. 

 

India VIX, the fear gauge index, eased nearly 9 per cent to 13.36, indicating a significant reduction in anxiety among traders. The market breadth turned positive as the advance decline ratio heavily favoured the bulls. A total of 2,522 stocks advanced , while 780 declined. 

 

Check - TOP GAINERS NSE | TOP LOSERS NSE

 

Vinod Nair, head of research, Geojit Investments, said that markets staged a moderate rebound, aided by supportive global cues, though investors remained watchful of the geopolitical developments that had triggered the last trading day's sell-off. "Domestically, sentiment remains relatively resilient, underpinned by an improved outlook for H2, a recovery in rainfall conditions, and better valuation levels."

  Stock market rally today: Key reasons 

 

IMF forecast: Sunny Agrawal, head - fundamental research at SBI Securities, said that market recovery was largely supported by the IMF's latest assessment that India remains among the fastest-growing major economies despite a challenging global environment. While the IMF marginally lowered its FY27 growth forecast to 6.4 per cent from 6.5 per  cent earlier, the resilience of domestic demand, strength in services activity and an upgrade to its FY28 growth outlook (from 6.5 per cent to 6.7 per cent) reinforced confidence in India's medium-term growth trajectory. IMF also highlighted better-than-expected recent economic data and encouraging high-frequency indicators, suggesting that underlying economic momentum remains intact.

 

FII activity: Foreign Institutional Investors (FIIs) bought equities worth Rs 1,962.80 crore on Wednesday, according to exchange data. Vijayakumar said that another important trend is that the trend of FIIs turning buyers continues. During the last four trading days, FIIs have been buyers in India. 

 

"They have bought equity for Rs 3954 crores in the cash market in the last four days. This trend may continue if crude remains stable. Large caps generally, and in financials and automobiles in particular, are likely to remain resilient," he said.  Oil prices: Vijayakumar said that geopolitics has again played spoilsport with the Indian market, which has been slowly strengthening. He said that the spike in Brent crude is a concern for the market, but September crude is trading at $76, which means the market doesn’t believe that the situation will aggravate. "Globally, markets haven’t panicked. But the scenario needs to be watched closely," he said.

 

At last check, Brent crude, the global oil benchmark, was trading higher by 1 per cent at USD 78.80 per barrel in futures trade. 

Sensex expiry: Today is also the weekly expiry for Sensex. An expiry session is typically marked by high volatility due to traders rolling over their futures and options (F&O) positions.

 

"Today's Sensex weekly expiry could spike intraday volatility as traders roll positions and adjust exposures," Devarsh Vakil, head of prime research at HDFC Securities, said.

 

Value buying: A strong buying activity was seen in largecap stocks a day after one of the sharpest sell-offs in recent weeks. From the Sensex pack, Bharti Airtel gained 3.3 per cent to become the top gainer. Sun Pharma, Eternal, Bajaj Finserv, and IndiGo added more than 2 per cent each. Heavyweights HDFC Bank and Reliance Industries were up nearly 1 per cent each. As per BSE data, Airtel, HDFC Bank, and RIL together contributed nearly 300 points to the Sensex's rally.

 

Asian markets gain: Asian shares climbed as semiconductors got a respite from heavy selling, though gains were capped by a surge in oil prices. South Korea's Kospi index gained more than 4 per cent in intraday move, before paring the gains to trade flat. Japan's Nikkei climbed 1.4 per cent to break a three-day losing streak.

 

Nifty recovers from support: Devarsh Vakil said that yesterday's decisive breach of key Nifty support levels at 24,200 and 24,000 weakens the short-term trend. The next support zone is located in the 23,817-23,645 band, derived from the upward gap formed on 15 June 2026. On the upside, 24,000 has now turned into immediate resistance.

 

"With both the surge towards 24600 and turn lower immediately thereafter having concluded, the stage is now set for either a large breakdown aiming 22,900, or swing higher towards 24400 again. Favoured view expects a recovery swing, aiming 24,041-24,229 initially. Alternatively, inability to sustain above 23,936 could confirm the next leg of downsides aiming 23,641 initially," Anand James, chief market strategist, Geojit Investments, said.  ============================================================= 

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