After three straight sessions of heavy losses, Indian equities staged a strong comeback on Thursday, offering investors much-needed relief. The BSE Sensex jumped over 800 points at its peak in early trade, while the Nifty 50 reclaimed key psychological levels above 25,300, snapping a bruising losing streak that had erased nearly ₹14 lakh crore of investor wealth.
The rebound came on the back of improved global sentiment, easing geopolitical tensions, and supportive domestic cues, even as market participants remained cautious about the sustainability of the rally.
Markets Open Strong After Global Risk-On Mood
Indian benchmarks mirrored positive global cues as Asian markets advanced sharply in early trade. Japan’s Topix, Australia’s S&P/ASX 200, and Hong Kong’s Hang Seng all traded in the green, while Euro Stoxx 50 futures pointed to a strong opening in Europe. Wall Street had ended higher overnight, buoyed by optimism around easing trade tensions and a calmer geopolitical backdrop.
This global risk-on mood encouraged bargain hunting in beaten-down Indian stocks, particularly in banking, metals, and capital goods.
Sensex, Nifty Levels to Watch
In early trade, the Sensex surged past the 75,000 mark, while the Nifty 50 briefly reclaimed the crucial 25,400 level. However, as the session progressed, some profit booking emerged, trimming gains from the day’s highs. Despite the intraday pullback, the broader tone remained positive, with most sectoral indices trading in the green.
Market participants noted that the Nifty holding above the 25,200–25,250 zone is critical for the rally to extend further in the near term.
Five Key Reasons Why the Stock Market Is Up Today
1. Global rebound lifts sentiment
A sharp recovery in global equities reduced risk aversion, prompting investors to return to equities after recent panic-driven selling.
2. Geopolitical tensions ease
Comments from global leaders helped calm fears around fresh trade and geopolitical disruptions, supporting risk assets worldwide.
3. Hopes of a U.S.–India trade breakthrough
Renewed optimism around bilateral trade discussions between the U.S. and India improved sentiment, particularly in export-oriented and industrial stocks.
4. EU trade deal optimism
Positive signals around a potential EU trade agreement added to global confidence, aiding emerging market equities like India.
5. Technical relief rally signals
After a nearly 2% fall in three sessions, technical indicators pointed to oversold conditions, triggering a relief rally driven by short covering and value buying.
Sectoral Performance: Banks Lead, Broader Markets Firm
All major sectoral indices traded higher during early hours, with PSU banks leading the gains. Select FMCG, pharma, and infrastructure stocks also attracted buying interest. However, mid-cap and small-cap stocks remained relatively volatile, reflecting continued caution among retail investors.
Stocks such as Waaree Energies, Dr Reddy’s Laboratories, and Eternal moved sharply on stock-specific developments and quarterly earnings updates, highlighting the growing divergence in market performance.
Bonds, Rupee Offer Additional Support
Indian government bonds extended gains amid speculation of Reserve Bank of India buying in the secondary market. The benchmark 10-year yield softened, while overnight index swap rates edged lower, reflecting easing pressure from global bond markets.
Meanwhile, the rupee recovered modestly from record lows, providing additional comfort to equity investors concerned about capital outflows
Relief Rally or Trend Reversal?
Despite Thursday’s sharp rebound, market experts cautioned that the move appears more like a relief rally than a confirmed trend reversal. Persistent foreign investor selling, mixed corporate earnings, and global uncertainty remain key overhangs.
For now, investors are advised to stay selective, focus on fundamentally strong stocks, and avoid chasing momentum until there is greater clarity on earnings growth and global cues.