Stock markets staged a strong rally on Thursday, with the Sensex surging over 1,500 points and the Nifty 50 closing higher as gains in information technology and banking stocks lifted benchmark indices. A fall in crude oil prices, a steadier rupee and hopes of renewed foreign investor interest also supported sentiment.
The BSE rose 1,533.72 points, or 2.11%, to close at 74,315.61. The NSE Nifty 50 gained 374.65 points, or 1.66%, to settle at 22,997.35.
The rally came amid weakness in global technology stocks, as concerns over stretched artificial intelligence-linked valuations and higher-than-expected US inflation weighed on overseas markets. The correction in global technology shares appeared to improve India’s relative appeal, encouraging buying in domestic large-cap stocks.
Technology stocks were among the biggest contributors to the benchmark gains. Tech Mahindra was the top Sensex gainer, rising 4.61%, followed by ICICI Bank, which advanced 4.17%. Reliance Industries gained 4.03%, while Bharti Airtel climbed 2.94% and HCLTech rose 2.58%.
Other major gainers included HDFC Bank, up 2.51%; TCS, up 2.28%; Kotak Mahindra Bank, up 2.22%; and Infosys, up 2.03%. Maruti Suzuki gained 2.01%, while Mahindra & Mahindra advanced 1.89%.
On the losing side, Bharat Electronics fell 0.60%, Trent declined 0.58% and Hindustan Unilever slipped 0.15%. Titan, Power Grid and NTPC ended marginally higher.
The performance pointed to strong buying in large-cap technology, private banking and select heavyweight stocks, although the gains were not evenly spread across the market.
The broader market showed a more mixed trend. The Nifty 100 rose 1.26%, the Nifty 200 gained 0.93% and the Nifty 500 advanced 0.65%. However, the Nifty Midcap 50 fell 0.24%, the Nifty Midcap 100 declined 0.36% and the Nifty Smallcap 100 dropped 1.31%.
India VIX, the market’s volatility gauge, fell 4.58% to 13.96, indicating a decline in expected near-term volatility.
Sectorally, the Nifty Private Bank index gained 1.89%, while the Nifty IT index rose 1.82%. The Nifty Auto index advanced 1.67%, and the Nifty Financial Services 25/50 index gained 1.60%. Oil and gas stocks also rose, with the sectoral index gaining 1.41%.
However, the Nifty FMCG index fell 1.06%, while the Nifty PSU Bank index declined 1.55%. The Nifty Media index slipped 1.47%, and consumer durables and chemicals stocks also ended lower.
Vinod Nair, Head of Research at Geojit Investments Limited, said concerns over stretched AI valuations and higher US inflation had triggered a sell-off in technology-heavy global markets, improving India’s relative appeal and encouraging investors to rotate towards domestic large-cap technology, private financials and defensive heavyweights.
He added that correcting bond yields, rupee stability and softer crude prices had supported sentiment, while hopes of a possible reconsideration of equity taxation had also improved risk appetite.
However, Nair cautioned that weakness in small- and mid-cap stocks and selling in PSU banks suggested that the rally lacked broad participation. He said the sustainability of the gains would depend on second-quarter earnings, wider market participation and evidence of foreign investor flows returning.
The rupee rose 0.1% against the US dollar to 95.055, supported by a broadly weaker dollar, lower oil prices and the sharp rise in equities, alongside likely central bank intervention.
Crude oil prices also eased. Brent crude fell 2.06% to $103.87 a barrel, while US West Texas Intermediate crude declined 0.35% to $94.76.
The combination of lower oil prices, currency stability and gains in heavyweight stocks provided support to the market. However, the divergence between benchmark indices and smaller stocks suggests investors will be watching whether buying broadens beyond large-cap shares in the coming sessions.
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