Equity benchmarks in India witnessed a robust bounce-back in the early trading hours on Thursday, reversing the downtrend that took hold over three consecutive sessions. This resurgence comes amid positive cues from Asian peers and substantial purchases in key heavyweight stocks such as the State Bank of India and Reliance Industries.
In the morning trading action, the 30-share BSE Sensex soared, charting a rise of 310.82 points to attain a level of 73,254.50. Similarly, the broader NSE Nifty index surged by 122.75 points, reaching 22,270.65. The rebound provides a temporary respite from the recent slump which saw the BSE benchmark spiral down by 2,094.47 points or 2.79 percent over the preceding three days.
A closer look at the basket of Sensex stocks reveals that leading the pack among the gainers were Power Grid, Mahindra & Mahindra, Bharti Airtel, Larsen & Toubro, Tata Steel, State Bank of India, Kotak Mahindra Bank, and Reliance Industries, all registering notable increases. Conversely, some of the constituents lagging behind included HCL Technologies, Axis Bank, Nestle, Tech Mahindra, Titan Company, and ITC, which faced headwinds during early trade.
The positive trend in the Indian stock markets was in tandem with the optimistic trading landscape across Asian markets. Cities like Seoul, Tokyo, Shanghai, and Hong Kong witnessed their respective bourses trading in the green. This upbeat mood, however, was slightly at odds with Wall Street’s performance where indices concluded the session lower on Wednesday.
In the commodities arena, the global oil benchmark Brent crude experienced an uptick, appreciating by 0.29 percent to USD 87.54 a barrel. This increase in oil prices often acts as a barometer for global economic health and investor sentiment.
Another notable mention in Thursday’s market activity was the movement of foreign funds. According to exchange data, Foreign Institutional Investors (FIIs) divested equities amounting to Rs 4,468.09 crore on Tuesday, signaling their cautious stance towards Indian equities amidst volatile market conditions.
It is imperative to highlight that the stock markets were not operational on Wednesday due to the observance of Ram Navami, a national holiday.
Before the recovery seen during Thursday’s trading session, the market was witness to a persistent drop, with the BSE Sensex nosediving by 456.10 points or 0.62 percent concluding at 72,943.68 on Tuesday. The Nifty too mirrored the downtrend, shedding 124.60 points or 0.56 percent to finish at 22,147.90.
Market watchers attribute the halt in the previous negative trend to both local and international factors. Domestically, the buying interest in heavyweight stocks, which have significant influence on index movements, is a clear catalyst. Internationally, the positive momentum seen in other Asian markets is lending support to the Indian markets.
Investors are now keenly observing the market’s direction, as the initial trading hours often set the tone for the rest of the day. The entry of fresh market catalysts or geopolitical events could swiftly alter the course, but for now, the rebound in Indian stock indices has brought some cheer to the market participants looking for signs of stability after days of decline.
