- Indian benchmarks Sensex and Nifty rallied sharply on Thursday.
- Value buying and declining volatility aided the market recovery.
- Positive global cues from Asian and US markets supported sentiment.
The Indian benchmark indices gained on Thursday as the Sensex rose 789 points to settle at 75,398 and the Nifty jumped 277 points to close trade at 23,689 at 3:30 PM.
In the 30-share BSE Sensex, among the top gainers were stocks like Bharti Airtel, Eternal, HDFC Bank, Adani Ports and Sun Pharmaceuticals. Meanwhile, the laggards included stocks like Maruti, Axis Bank, Hindustan Unilever, TCS and HCLTech.
In the broader markets the Nifty Midcap 150 and the Nifty Largemidcap 250 declined 1.18 per cent each as volatility declined. Sectorally, Nifty Pharma jumped 2.74 per cent and Nifty IT tumbled 1.99 per cent.
Benchmark equity indices Sensex and Nifty rallied sharply on Thursday, aided by value buying, easing volatility and positive global market cues amid optimism surrounding the ongoing US-China talks.
At 1:38 pm, the Sensex was up 1,038.91 points, or 1.39 percent, at 75,647.89, while the Nifty gained 347.05 points, or 1.48 percent, to trade at 23,759.65. Around 1,871 shares advanced, 1,876 declined and 138 remained unchanged.
Value Buying Supports Recovery
Investors continued buying beaten-down stocks after recent sharp losses in the market. The Sensex and Nifty had ended marginally higher on Wednesday after declining nearly 4 percent in the previous four sessions amid rising crude oil prices and concerns triggered by Prime Minister Narendra Modi’s austerity call.
Analysts, however, said the rebound reflected “oversold” market conditions rather than a decisive improvement in sentiment.
“The final leg of the earnings season and selective policy tailwinds provide stock- and sector-specific support for the markets, but the overall sentiment remains fragile due to elevated crude prices,” Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services, told Reuters.
Volatility Declines
The India VIX, often referred to as the market’s fear gauge, fell 4 percent to 18.66.
A decline in the volatility index generally signals easing investor nervousness and improves risk appetite in equities, helping markets trade with a positive bias.
Positive Global Cues Aid Sentiment
Asian markets traded higher on Thursday.
Tokyo’s Nikkei 225 index rose 0.3 percent to 63,448.87 after briefly touching another intraday record high above 63,700, supported by strong corporate earnings.
South Korea’s Kospi gained 0.5 percent to 7,884.71, led by technology stocks. Hong Kong’s Hang Seng advanced 0.7 percent to 26,584.88, while Taiwan’s Taiex climbed 0.6 percent.
On Wall Street overnight, technology shares led gains. The S&P 500 rose 0.6 percent to 7,444.25, touching another record high. The Dow Jones Industrial Average slipped 0.1 percent to 49,693.20, while the Nasdaq Composite climbed 1.2 percent to 26,402.34 and hit a fresh peak.
US-China Talks In Focus
Investor sentiment also remained supported by optimism surrounding the ongoing talks between the United States and China.
Oil prices traded higher amid continuing tensions linked to the Iran conflict, with investors hoping the Trump-Xi meeting could yield progress after US officials said Beijing could use its close economic ties with Tehran to pressure Iran to reopen the Strait of Hormuz, according to AP.
Chinese President Xi Jinping on Thursday said 2026 would be a “historic, landmark year” for China-US relations as he welcomed US President Donald Trump for talks at the Great Hall of the People.
The leaders of the world’s two largest economies are scheduled to hold multiple rounds of discussions on Thursday and Friday.
