Markets staged their sharpest single-day rally in weeks on Thursday, defying a regional bloodbath that saw South Korea’s KOSPI plunge 7.57 per cent, its seventh straight session of losses, and trigger an emergency trading halt, while Japan’s Nikkei shed 4.56 per cent.
The BSE Sensex closed at 74,315.61, up 1,533.72 points or 2.11 per cent, while the ended at 22,997.35, gaining 374.65 points or 1.66 per cent, closing above its 20-day exponential moving average for the first time since August 14.
The Nifty briefly touched 23,056 intraday before mild profit-booking trimmed gains. Bank Nifty rose 494.50 points or 0.89 per cent to 55,810.50. Large-caps drove the rally: Tech Mahindra surged 4.75 per cent, ICICI Bank rose 3.80 per cent, Bharti Airtel gained 3.98 per cent, Reliance Industries added 3.50 per cent, and HCL Technologies climbed 3.10 per cent. Meanwhile, the Nifty Midcap 100 fell 0.36 per cent, and the Smallcap 100 declined 1.31 per cent.
Market breadth remains weak despite headline gains
The divergence was striking, but the celebration on Dalal Street came with a caveat. “Thursday’s Nifty number is misleading. The real story is in what it hides…advances came in at 1,343, declines at 2,218…this was not a rally. It was a rotation,” said Sarvam Goel, Founder of Pocketful.
Yes Bank, IDBI Bank and Nestlé India weigh on sentiment
fell 14.53 per cent after the Supreme Court upheld the Bombay High Court’s decision to cancel the ₹8,415 crore write-off of its AT1 bonds, creating a potential financial liability for the lender. Goel warned the ruling “weakens the entire framework that allows distressed banks to be rescued without taxpayer money…every future bank restructuring just got more complicated.”
Separately, fell over 7 per cent after the government approved the sale of its 60.72 per cent stake to Fairfax Financial Holdings for ₹52,878 crore at ₹81 per share, a price well below the stock’s previous close. Canara Bank shed 6.12 per cent as PSU banks broadly declined 1.55 per cent on AT1 bond risk concerns. Nestlé India dropped 7.76 per cent on disappointing quarterly results, with premium FMCG under pressure from input costs and weak volumes.
Rupee extends gains; crude oil eases
On the macro front, the Indian rupee extended its winning streak to five sessions, appreciating 9 paise to close at 95.06 against the dollar, aided by RBI intervention and unwinding of dollar longs. Brent crude eased roughly 2.3 per cent to around $103.6 a barrel, offering some relief. MCX Gold rose 1.19 per cent to ₹1,47,584, while MCX Silver gained 0.65 per cent.
SEBI panel backs existing derivatives settlement method
On the regulatory side, SEBI’s advisory panel reportedly backed retaining the existing 30-minute VWAP method for derivatives expiry settlement, keeping the proposed CAS-linked formula on hold. India’s gross direct tax collections rose 14.9 per cent year-on-year to ₹16.03 lakh crore as of October 14.
Jio Platforms IPO opens on October 21
Looking ahead, Jio Platforms’ IPO, priced at ₹1,065–1,119 per share for a fresh issue of up to ₹30,213 crore, opens on October 21, potentially becoming India’s largest-ever public offering. Ajit Mishra, SVP-Research at Religare Broking, cautioned that “…geopolitical uncertainty and persistent foreign fund outflows continue to pose risks to a sustained recovery,” and noted that 23,100–23,150 is the next key resistance for the Nifty, with Q2 earnings as the primary driver of near-term direction.