Mumbai: Indian equity markets staged a strong recovery on Thursday after several sessions of weakness, supported by buying in information technology, banking and heavyweight stocks. Easing crude oil prices, softer US bond yields and hopes of improved trade relations also lifted investor sentiment.
According to market data at 11:36 am, the BSE Sensex surged 1,140.31 points, or 1.57 per cent, to 73,922.20.
The NSE Nifty 50 climbed 324.25 points, or 1.43 per cent, to 22,946.95 at 11:37 am.
Sensex, Nifty Witness Strong Buying
The Sensex opened at 72,965.80 and touched an intraday high of 73,953.66. Its previous closing level was 72,781.89.
Similarly, the Nifty opened at 22,671.30 and climbed to an intraday high of 22,960.05, moving closer to the psychological 23,000 mark.
The rally reflected renewed buying interest following sustained selling pressure in recent weeks.
IT And Banking Stocks Lead Rally
Information technology stocks emerged as major gainers following encouraging quarterly results from HCL Technologies.
Tech Mahindra gained nearly 2 percent, while Tata Consultancy Services advanced around 1.5 percent in early trading.
Financial stocks also strengthened, with private banks rising approximately 1.4 per cent. HDFC Bank gained 1.2 percent, while ICICI Bank climbed 2 percent.
Reliance Industries advanced around 2.1 per cent amid developments surrounding the proposed Jio Platforms IPO.
Falling Crude Oil Prices Support Sentiment
Brent crude declined nearly 1 percent to approximately USD 105 per barrel.
Lower oil prices are positive for India, which imports a significant portion of its crude requirements.
Cheaper crude can reduce inflationary pressure, improve corporate margins and support economic growth.
US Bond Yields Ease
The US 10-year Treasury yield declined towards 5.13 per cent, improving sentiment across emerging equity markets.
Lower bond yields can make equities relatively attractive and potentially reduce pressure from foreign institutional selling.
However, uncertainty surrounding US interest rates continues to influence global investment decisions.
Rupee Expectations And Trade Deal Optimism
Expectations of rupee stability against the US dollar also supported market confidence.
Investors are additionally watching potential India-US trade developments ahead of US Secretary of State Marco Rubio's reported October 17-22 India visit.
Any positive progress in trade negotiations could further strengthen market sentiment.
Nifty Outlook: Can 23,000 Be Crossed?
Market analysts identify 23,000-23,100 as the next important resistance zone for the Nifty.
A sustained breakout above 23,100 could strengthen recovery prospects, while 22,600 remains an important support level.
Traders should remain cautious about volatility, particularly around weekly derivatives expiry and upcoming corporate earnings.
