Indian benchmark equity indices staged a significant rebound on Thursday, with the Sensex gaining 273.55 points and the Nifty closing above 24,300, as bargain hunting and short-covering propelled a broad-based rally led by the IT and auto sectors.
Key Points
- Indian benchmark equity indices, Sensex and Nifty, closed higher on Thursday, reversing earlier weaknesses.
- The rebound was primarily driven by bargain hunting and short-covering, with IT and auto sectors leading the rally.
- Nifty Auto was the top sectoral gainer, while Nifty Realty and Nifty Chemicals were the top drags.
- Market analysts suggest a 'buy on dips' strategy for Indian markets, citing the reclaim of the 24,200-24,250 zone on Nifty as a positive sign.
- Commodity markets saw Brent crude near $90 and WTI above $84, while spot gold held steady near $4,060 an ounce.
Domestic benchmark equity indices closed higher on Thursday amid mixed sectoral performance with bargain hunting driving a broad-based rally led by IT and auto.
The Sensex closed in the green at 77,928.15, up 273.55 points or 0.35 per cent while Nifty closed at 24,317.15, up 66.95 points or 0.28 per cent.
Sectoral Performance and Top Movers
Sectorally, Nifty Realty was the top drag, losing 2 per cent, followed by Nifty Chemicals (1.18 per cent).
Nifty Auto emerged as the top sectoral gainer ending 1.63 per cent higher.
In the broad market, most indices ended in the red.
On BSE, M&M, Maruti, Tech Mahindra, Reliance, SBI, Power Grid, Sun Pharma, NTPC, LT, Bajaj Finance among others were the top gainers. Adani Ports, BEL, Indi Go, ICICI Bank, Infosys, Trent among others were the top drags.
Market Analyst's View
Market analyst Vipin Dixena noted, "Indian equities staged a solid recovery, with benchmarks reversing early weakness to close firmly in the green as short-covering and bargain hunting drove a broad-based rally led by IT and auto.
The move was led by short-covering and bargain hunting after a sharp mid-week correction, supported by a stabilizing rupee and constructive FII flows."
He further noted, "Technically, the reclaim of the 24,200-24,250 zone on Nifty is a positive sign, though sustained upside will depend on follow-through buying, softer crude, and continued institutional participation.
"The markets should be looked with buy on dips strategy."
Commodity Market Update
In the commodity market, Brent crude was trading at around $91.23 per barrel while crude oil was trading at around $84.49 per barrel.
At the same time, gold was trading at around $4,069.57.
Kaynat Chainwala, AVP Commodity Research, Kotak Securities noted, "Brent holds near $90 and WTI above $84 today after Wednesday's sharp reversal, with fresh reports of a strike in Iran's West Azerbaijan province and a tanker explosion flagged in the southern Red Sea keeping the supply-risk premium intact."
For precious metal, Chainwala said, "Spot gold holds steady near $4,060 an ounce, silver near $57.5, as markets digest the Fed's status quo ahead of today's US GDP, PCE inflation and jobless claims data.
"Gold had earlier pulled back to $4,030 and silver slipped below $57, easing after closing 1% higher yesterday, when gold rallied more than 3% intraday, rebounding from below $4,000 to above $4,115 before settling near $4,070 as the Fed held rates for a fifth straight meeting and the dollar fell to a one-week low near 100.8."
