03 September,2026 10:08 AM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
After extending their losses for three days, the domestic equity benchmark indices rebounded on Thursday in the early trade tracking Asian markets, amid easing in US bond yields and a stable rupee that is likely to boost foreign inflows, despite the renewed US-Iran conflict.
The 30-share BSE Sensex advanced 194.20 points or 0.25 per cent to 76,764.55 in early trade. The 50-share NSE Nifty gained 58.50 points or 0.24 per cent to 23,972.95 in the initial trade.
According to Shrikant Chouhan, Head Equity Research, Kotak Securities, the overall structure remains weak.
"The market has been breaking important support levels with relatively little effort, which is a matter of concern. A decisive dismissal of the 23,600/75,400 support zone could trigger another round of capitulation. For Thursday, 23,800 on the Nifty and 76,100 on the Sensex will remain crucial trend-deciding levels," he said.
Among the Sensex constituents, bank stocks were the gainers in the early trade, with shares of Axis Bank, ICICI Bank, HDFC Bank and State Bank of India trading over 1 per cent higher. Adani Ports and Tata Steel were also among the major gainers. However, IT stocks such as Tech Mahindra, HCL Tech, Infosys, Tata Consultancy Services (TCS) were among the major laggards along with Titan.
On Wednesday, the Sensex shed 373.93 points, or 0.49 per cent, to settle at 76,570.35, while the Nifty tanked 141.35 points, or 0.59 per cent, to end at 23,914.45.
"Asian markets are showing signs of stabilisation this morning after Wednesday's sell-off, with the Kospi opening 1.33 per cent higher and the Nikkei broadly flat. Investors are reassessing the latest escalation in the Middle East, while Brent remains elevated around USD 95.43 a barrel, keeping pressure on India's import bill and inflation outlook," Rajesh Palviya, Head of Research, Axis Direct said.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index all traded higher.
According to news agency PTI, Brent crude, the global oil benchmark, was trading marginally lower by 0.16 per cent at USD 95.48 per barrel in futures trade, while Foreign Institutional Investors (FIIS) purchased equities worth Rs 6,688.37 crore on a net basis on Wednesday.
"The market sentiment is likely to look up today following the slight easing of the US bond yields. A big positive from the rupee perspective is the huge mobilisation of USD 136 billion under concessional swap facility. The USD 127 billion mobilised under the FCNR(B) scheme has come way above the consensus estimates. The implication of this from the market perspective is that the rupee will stabilise, imparting confidence to FIIs," V K Vijayakumar, Chief Investment Strategist, Geojit Investments said.
"With improving growth and earnings prospects, FIIs are likely to continue buying in India, despite the elevated US bond yields. Also, the huge FCNR(B) mobilisation by banks will help improve their net interest margins. This is positive for banking stocks," he added.
He noted that the market indices, especially, the Nifty declined on Wednesday despite a Rs 9,500 crore of institutional buying, with FIIs purchasing equities worth Rs 6,688 crore and Domestic Institutional Investors (DII) buying equities worth Rs 2,812 crore.
"So, it is obvious that the brunt of the selling came from retail investors, proprietary traders and bears who used the market weakness to hammer the stocks down. This is likely to reverse today," he further said.
(With inputs from PTI)
