20 August,2026 05:32 PM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
The domestic benchmark equity indices rebounded on Thursday, mirroring global markets as softer US Treasury yields made global investor sentiment positive, despite a sharp spike in global crude oil prices.
"Indian benchmark indices staged a sharp rebound after a seven-session losing streak, supported by recovery across key Asian markets and short covering following the recent sell-off. Buying interest strengthened through the session. However, elevated crude oil prices and continued tensions between the US and Iran remain key concerns for the market," Bajaj Broking Research said.
The 30-share BSE Sensex that had declined for four days, reversed the trend and surged 628.04 points, or 0.82 per cent, to settle at 77,537.72. The 50-share NSE Nifty snapped its seven days of losses to soar 153.55 points, or 0.64 per cent to end at 24,231.85.
"Markets found much-needed relief after the US Treasury stepped in to contain the surge in global bond yields, triggering a strong broad-based rebound and ending the domestic market's week-long losing streak. The intervention has dragged down the dollar, which, along with a firmer rupee and easing yield pressures, boosted attractiveness to emerging markets," Vinod Nair, Head of Research, Geojit Investments.
"The recovery was widespread across sectors, driven primarily by strength in IT and financial stocks, as a cooling yield environment supports spending. Yet, the market's optimism remains guarded as stubbornly high crude oil prices, driven by unresolved US-Iran tensions, continue to cast a shadow over inflation and corporate profitability. The near-term outlook is likely to hinge on the direction of global yields, energy prices and geopolitical developments, with sustained stability needed to keep earnings momentum and foreign inflows intact," Nair added.
Among the Sensex constituents, Eternal, Kotak Mahindra Bank, ITC, Bajaj Finance, Axis Bank and UltraTech Cement were the major gainers. Tata Steel, InterGlobe Aviation, HCL Tech and Titan were among the laggards.
"Indian equities are expected to remain sideways with a marginal recovery bias, supported by value buying after seven consecutive sessions of decline and firm global cues. Broader market action and sector-specific opportunities are likely to remain in focus. Domestic equities rebounded, with the Nifty 50 gaining 0.6 per cent, while the Midcap100 and Smallcap100 indices advanced 0.4 per cent and 7 per cent, respectively," Siddhartha Khemka Head of Research, Wealth Management, Motilal Oswal Financial Services said.
"All sectoral indices ended in the green, led by Nifty Private Banks (0.9 per cent), Nifty FMCG and Nifty IT (0.8 per cent each). The Nifty IT index extended its two-session recovery after declining around 4 per cent over the previous three sessions," 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.
The US Treasury announced that it would double its buyback operations for longer-dated Treasury bonds, pushing US long-term yields lower, which renewed the optimism for equities in emerging markets.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite index and Hong Kong's Hang Seng index all ended higher.
According to news agency PTI, Brent crude, the global oil benchmark, jumped 2.67 per cent to USD 93.91 per barrel, while Foreign Institutional Investors (FIIs) bought equities worth Rs 407.99 crore on Wednesday.
(With inputs from PTI)
