In a significant turnaround, the Indian stock market witnessed a notable rebound on Thursday, with the benchmark Sensex climbing 335 points and the Nifty breaching the 22,100 level. The recovery was primarily driven by increased buying activity in IT and metal shares, marking a resurgence after the previous day's sharp declines.
Key market movements
Sensex performance: The 30-share BSE Sensex surged by 335.39 points or 0.46 per cent to settle at 73,097.28. Earlier in the day, it had soared by 602.41 points or 0.82 per cent to touch 73,364.30.
Nifty movement: The NSE Nifty gained 148.95 points or 0.68 per cent to reach 22,146.65, indicating a positive trend in the market sentiment.
Sectoral gains and losses: Notable gainers in the Sensex pack included HCL Technologies, Infosys, Wipro, Bharti Airtel, Larsen & Toubro, Mahindra & Mahindra, Tata Consultancy Services, and Asian Paints. Conversely, Axis Bank, IndusInd Bank, Bajaj Finance, JSW Steel, State Bank of India, and Tata Steel experienced declines.
Broader market recovery: The BSE Smallcap gauge surged by 3.11 per cent, while the midcap index climbed by 2.28 per cent, indicating a broad-based recovery across market segments.
Economic data impact: The wholesale inflation rate saw a marginal decline to 0.2 per cent in February, despite a slight uptick in the food basket. This brought relief to investors and indicated a favourable trajectory for future rate cuts.
Market analyst's perspective: Vinod Nair, Head of Research at Geojit Financial Services, noted, "The market was able to recover half of last trading day’s sell-off as leverage-based square-off neutralised it, while institutional buying sustained the buoyancy. Domestic economic data Wholesale Price Inflation (WPI) eased to a four-month low at 0.2% YoY in February, bringing ease to the upcoming CPI trajectory, a relief for future rate cuts. The broader market is outperforming the headline indices, taking advantage of mid and smallcap as a bargaining strategy."
Other Market Developments
Fitch ratings outlook: Fitch Ratings raised India's economic growth forecast to 7 per cent for the next fiscal year, citing strong domestic demand and sustained business and consumer confidence.
Foreign Institutional Investors (FIIs) activity: FIIs offloaded equities worth Rs 4,595.06 crore on Wednesday, as per exchange data, indicating cautious investor sentiment.
Global market trends: Asian markets witnessed mixed results, with Seoul and Tokyo settling in the green, while Shanghai and Hong Kong ended lower. European markets traded mostly in the green, and the US markets closed on a mixed note on Wednesday.
Crude oil prices: Global oil benchmark Brent crude climbed 0.76 per cent to USD 84.67 a barrel, reflecting stability in the energy market amid ongoing geopolitical tensions.
Overall, the market exhibited signs of recovery, with positive economic indicators and global market trends contributing to renewed investor confidence.
