20 August,2026 10:18 AM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
The domestic benchmark equity indices rebounded on Thursday after days of slump, tracking global cues, as softer US Treasury yields improved global investor sentiment in equity markets.
After extending its losses for four days, the 30-share Sensex recovered to surge 504.15 points or 0.66 per cent to 77,413.83 in the early deals. The 50-share Nifty snapped its seven day losing streak to climb 119.35 points or 0.50 per cent at 24,197.65 in the initial trade.
"The market, which has been steadily down trending for the last 12 trading sessions, appears set for a short-term reversal now. The market is in oversold territory and a mild rally triggered by short-covering is likely. The decline in US bond yields indicates a positive potential construct for equity markets, globally," VK Vijayakumar, Chief Investment Strategist, Geojit Investments said.
"A significant trend in the market is that while large caps are languishing, the mid-and small-caps are doing well. This rally has fundamental support from revenue and earnings growth. Segments like CDMO (Contract Development and Manufacturing Organization), precision engineering and power infrastructure are doing very well and the management commentaries are very positive. Part of the good news in these segments are already in the price, but there is more room for price appreciation in these segments," he added.
On Wednesday, the Sensex slumped 325.78 points, or 0.42 per cent, to settle at 76,909.68, extending its losses for the fourth day, with the benchmark declining 1,170.28 points, or 1.49 per cent during the four days. The 50-share NSE Nifty registered its seventh day of loss, and shed 76.60 points, or 0.32 per cent, to end at 24,078.30, declining 505.5 points, or 2 per cent during this period.
"We are of the view that the intraday market texture is weak, but one quick pullback rally is not ruled out if the market surpasses the 24,200/77400 resistance mark. Above that, we could expect a technical bounce back to the 24,300-24,350/77500-77800 levels," Shrikant Chouhan, Head Equity Research, Kotak Securities said.
From the Sensex pack, barring Tata Steel, all the stocks were trading higher. Infosys, Eternal, Axis Bank, Bajaj Finance, Tech Mahindra, Hindustan Unilever were the major gainers, with all their stocks trading over 1 per cent higher in the initial dealings.
The US Treasury announced that it would double its buyback operations for longer-dated Treasury bonds, thus pushing the US-long term yields lower. A lower US Treasury yield benefits emerging markets such as India, as investors look for other alternatives.
According to news agency PTI, Foreign Institutional Investors (FII) purchased equities worth Rs 407.99 crore on a net basis on Wednesday, while Brent crude, the global oil benchmark, was trading higher by 0.32 per cent at USD 91.91 per barrel in futures trade.
In the Asian market, South Korea's Kospi, Japan's Nikkei 225 and Shanghai's SSE Composite and Hong Kong's Hang Seng index all traded higher.
(With inputs from PTI)
