Indian equities witnessed a significant rally on Thursday, with the benchmark Sensex climbing 554 points to reach 78,77,463 and the Nifty 50 advancing 128 points to 24,210. This broad market uplift pushed the total market capitalization of BSE-listed firms to Rs 488.70 lakh crore.
Top Performers and Market Movers
Among the Sensex constituents, Bajaj Finance, Infosys, HCL Tech, Eternal, and TCS led the gains, with their shares rising by up to 1.88%. Conversely, Mahindra & Mahindra (M&M) was the sole laggard, experiencing a modest dip of 0.10%. Sectorally, capital goods, metal, and IT shares were prominent gainers, with the BSE IT index notably rising 417 points to 29,601, contributing substantially to the overall market strength.
Key Factors Fueling the Rally
Several factors contributed to today's robust market performance:
- Falling US Bond Yields: US Treasury yields saw a sharp decline following the US Department of the Treasury's announcement to double its government debt buybacks. The benchmark 10-year note yield dropped to approximately 4.64–4.66%, while the 30-year bond yield fell around 10 basis points to near 5.19%. This decline is generally viewed as a positive signal for global equity markets.
- Positive Asian Market Rally: Asian markets also displayed strong upward momentum. South Korea's Kospi surged 6.18% (400 points) as technology stocks rebounded. Japan's Nikkei rose 595 points to 65,896, and Hong Kong's Hang Seng gained 1.15% (292 points).
- Sustained FII and DII Interest: Foreign Institutional Investors (FIIs) extended their buying streak for the second consecutive day, injecting Rs 407 crore into equities. Domestic Institutional Investors (DIIs) continued their buying spree for the seventh straight session, investing a substantial Rs 3,973 crore, providing strong domestic support to the market.
However, the price of Brent crude oil, trading above the $91 per barrel mark at $91.94, poses a potential risk to the sustained rally in Indian equities.
Expert Insights
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, commented, "The market, which has been steadily downtrending 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."
Shrikant Chouhan, Head Equity Research at Kotak Securities, added, "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."
Previous Session's Performance
In the preceding session on Wednesday, both Sensex and Nifty closed lower. Sensex fell 325.78 points (0.42%) to 76,909.68, and the Nifty was down 76.60 points (0.32%) at 24,078.30.