Indian stock markets witnessed a sharp rebound on Thursday, with both the Sensex and Nifty rallying strongly by mid-session, driven by foreign portfolio investor (FPI) buying, a positive rerating of Indian equities, and strengthening domestic fundamentals.
After a weak start in the morning session, the Nifty 50 surged over 300 points to hit 23,707.45, marking a 1.15% gain, while the BSE Sensex jumped over 1000 points to touch 78,007.05, up 1.27%.
According to Ajay Bagga, a banking and market expert, India’s resilience since the April 2 sell-off has led to a renewed investor confidence. “There has been a positive rerating of the Indian markets due to robust domestic fundamentals, rupee strength, FPI inflows, and a resilient corporate outlook. Forecasts of a normal to above-normal monsoon have bolstered the consumption story, while RBI’s liquidity support is helping both financial conditions and market sentiment,” Bagga told ANI.
Sectorally, Nifty Bank stocks led the rally, with the Private Bank index rising over 1.3%. All sectors except Nifty IT ended in the green. While Nifty IT opened with over a 2% drop, it later recovered slightly and was down 0.95% at the time of reporting.
Vijay Chopra, another market analyst, attributed the rally to multiple tailwinds: “Markets are in rally mode thanks to easing crude prices, a strong rupee, falling inflation, and expectations of a good monsoon. Bank stocks, in particular, are showing strength due to strong deposit growth, possibly driven by cautious investor positioning over the past six months.”
In the Nifty 50 index, top gainers included Bharti Airtel, ICICI Bank, Adani Ports, and Eternal, while Wipro, Hero MotoCorp, Tech Mahindra, and Coal India were among the top laggards.
With macro indicators aligning positively and investor sentiment recovering, the Indian markets appear poised for sustained momentum in the near term.