FII buying fuel market rally; Sensex jumps 1,508 points, Nifty reclaims 23,850

Indian stock markets staged a strong recovery on Thursday, with the Sensex jumping 1,508 points to close at 78,553.20, and the Nifty reclaiming 23,850, backed by broad-based buying across sectors. Key contributors to this rally were financials, auto, and oil & gas stocks.

After a subdued start, markets gained momentum in the second half, mirroring firm trends in global markets. Top gainers included Bharti Airtel, ICICI Bank, Grasim, Sun Pharma, and Zomato.

Key Drivers Behind the Market Rally

1) Strengthening Rupee:

The Indian rupee appreciated by 10 paise to 85.54 against the US dollar, supported by consistent foreign capital inflows and a softer dollar globally.

2) Positive Global Markets:

Asian indices posted strong gains, with South Korea’s Kospi up 1%, Japan’s Nikkei rising 1.32%, and Hong Kong’s Hang Seng gaining over 1%. US futures were also in the green, hinting at a strong Wall Street opening.

3) Sustained FII Buying:

Foreign Institutional Investors (FIIs) remained net buyers for the second consecutive day, picking up shares worth ₹3,936 crore on Wednesday, while domestic investors booked profits.

4) Hopes of a US-India Trade Deal:

Optimism around a possible bilateral trade agreement between India and the US lifted market sentiments, offering hopes of new opportunities for Indian exporters amid ongoing global trade tensions.

5) Heavy Buying in Blue Chips:

Strong buying was seen in heavyweight stocks like Bharti Airtel, Zomato, ICICI Bank, Sun Pharma, and State Bank of India, with gains of up to 3%.

Technical Outlook

Anand James, Chief Market Strategist at Geojit Financial Services, noted that markets reversed sharply after briefly dipping below 23,300, hinting at trend exhaustion. Currently, about 72% of Nifty 50 stocks are trading in the upper half of the Bollinger Bands, suggesting possible sideways movement in the near term. Key levels to watch are 23,160 as support and 23,650 as resistance.

Disclaimer: Investment decisions should be made after consulting certified financial experts. Views expressed are personal opinions of market analysts.