Mumbai: The Indian stock market staged a sharp recovery on Thursday after three straight days of decline. In a highly volatile session, the Sensex bounced back more than 400 points from the day’s low, while the Nifty successfully held above the 25,900 mark.
Strong value buying, positive signals on the India–US trade deal, and the US Federal Reserve’s interest rate cut helped improve market sentiment. Buying returned in IT, banking, metal, and auto stocks, giving strength to the rebound.
How the Trading Session Moved
The market opened on a positive note but slipped into the red soon after due to profit booking and expiry pressure. The Sensex at one point fell 222 points to 84,168, while the Nifty touched 25,707. However, value buying at lower levels changed the picture completely.
By the end of the session:
- Sensex closed 426.86 points higher at 84,818.13
- Nifty rose 140.55 points to 25,898.55
Market breadth also improved, with 1,869 stocks rising, 1,575 declining, and 158 remaining unchanged.
Top Performers of the Day
ETERNAL, Kotak Mahindra Bank, and Jio Financial Services were among the top gainers, rising up to 2 percent. Meanwhile, Trent and Bharti Airtel saw minor declines.
Why the Market Rebounded?
The recovery was supported by multiple factors-strong value buying after days of losses, encouraging updates on the India–US trade deal, and the US Federal Reserve cutting interest rates by 0.25 percent, marking the lowest level in three years.
Lower US rates often push more investment into emerging markets like India. The India VIX dropped 2 percent to 10.74, showing reduced investor fear. Strong global cues and weekly derivatives expiry in Sensex also added to sudden buying.
Market expert Anand James of Geojit said Nifty once again tested its previous day’s low of 25,732, which shows the market lacks clear direction. He added that technical momentum indicators remain weak, with key support at 25,690–25,630.
What to Watch Tonight?
Investors will track two major US data points-Initial Jobless Claims and the Trade Deficit numbers-both of which can influence future Federal Reserve policy.
