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Share Market Today: Indian equity markets staged a strong comeback on Thursday buoyed by renewed buying in heavyweight stocks; Key points for investors
Sensex, Nifty rebound sharply amid bullish domestic, global cues
Share Market Updates: Indian equity markets staged a strong comeback on Thursday, with the Sensex approaching the 82,000 mark, buoyed by renewed buying in heavyweight stocks and a positive global outlook following comments by US Federal Reserve Chairman Jerome Powell, highlighting the resilience of the US economy.
Strong foreign institutional investor (FII) inflows, along with optimism ahead of the Reserve Bank of India’s (RBI) monetary policy decision on Friday, further supported the market’s momentum.
By 2:15 PM, the BSE Sensex was up by nearly 1,000 points, or 1.23%, at 81,950, recovering 1,500 points from the day’s low. The Nifty gained 275 points, reaching 24,740. The rally was spearheaded by heavyweight IT stocks, including TCS, Infosys, Wipro, and Tech Mahindra, reflecting improved global sentiment and robust FII activity.
Heavyweight Stocks Propel the Rebound
The market’s recovery was largely driven by strong buying in heavyweight stocks across sectors, with IT majors leading the charge. Shares of TCS, Infosys, Wipro, and Tech Mahindra surged after Powell’s comments indicated that the US economy was performing better than anticipated, boosting global risk sentiment and driving investors toward equities.
Among the top Nifty gainers, Titan Company rose 1.8% to ₹3,425, while Infosys, Dr. Reddy’s Laboratories, TCS, Wipro, and Tech Mahindra gained 1-2% each. The broad-based recovery signaled renewed investor confidence in blue-chip stocks.
RBI Policy Decision and PSU Bank Stocks
Domestically, optimism surrounding the RBI’s upcoming policy decision is adding to the bullish sentiment. While no rate cuts are expected, there is hope for dovish guidance, keeping market participants upbeat. Banking stocks, especially in the PSU segment, are leading the rally, with the Bank Nifty nearing its all-time high.
IT stocks continued to see strong buying interest, contributing significantly to the market’s recovery. Analysts are also highlighting buy signals for stocks like Lupin, HDFC Bank, and Aurobindo Pharma, with PSU banks registering notable gains.
FII Inflows Reverse After Months of Selling
FIIs have turned net buyers in December, providing a significant boost to Indian equities. On Wednesday, they purchased shares worth Rs 1,798 crore, following a net purchase of Rs 3,665 crore on Tuesday. So far in December, FIIs have infused Rs 5,224 crore into Indian equities, marking a sharp reversal from their net outflows of Rs 1.6 lakh crore in October and November.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that FIIs have been unwinding short positions, which, combined with consistent domestic institutional investments, has injected liquidity into the markets. “Selling pressure from FIIs seems to be easing, and growth expectations are picking up for the second half of the fiscal,” Bathini said.
Global and Domestic Macroeconomic Optimism
The rebound in Indian markets mirrors a broader risk-on sentiment in global equities. The Dow Jones Industrial Average surpassed the 45,000 mark for the first time, driven by robust growth and cooling inflation in the US. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that Powell’s remark that the “economy is in remarkably good shape” gave a significant boost to US markets, which in turn supported global equities.
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