Sensex Today: Indian stock markets rebounded after two sessions of losses, with the Sensex gaining 879 points and the Nifty rising 1.3%, supported by IT stocks and easing crude oil prices.
Sensex Today: Indian benchmark equity indices staged a strong recovery on Friday, snapping a two-session losing streak as buying interest in information technology (IT) stocks and a decline in crude oil prices lifted market sentiment.
The 30-share BSE Sensex climbed 879.09 points, or 1.23%, to close at 72,472.33. During the session, the index advanced as much as 1,075.96 points, or 1.50%, to touch an intraday high of 72,669.20.
The NSE Nifty 50 also recovered, gaining 288.65 points, or 1.30%, to settle at 22,520.45.
ITC emerged as the top gainer among the Sensex constituents, rising 4.78%. Tata Consultancy Services (TCS) followed with a 4.23% advance, supported by its latest quarterly earnings and an optimistic business outlook.
TCS reported a 15% year-on-year increase in net profit to Rs 13,884 crore for the July-September quarter. The company also indicated that its growth momentum was expected to continue, providing additional support to investor sentiment towards the IT sector.
Other major gainers included Adani Ports, Infosys, HCL Technologies, Larsen & Toubro and HDFC Bank. Reliance Industries was the only laggard among the blue-chip stocks in the Sensex pack.
A decline in international crude oil prices also contributed to Friday's recovery. Brent crude, the global oil benchmark, fell 1.32% to USD 102.90 per barrel.
Lower crude prices can offer some relief to oil-importing economies such as India by easing pressure on import costs, inflation and corporate margins. However, the broader impact depends on how long the decline in oil prices lasts and how global energy markets evolve.
Vinod Nair, Head of Research at Geojit Investments Ltd, said domestic equities witnessed a relief rally, supported by value buying and short covering following the recent sharp correction.
He noted that IT stocks outperformed as the second-quarter earnings season got off to a strong start and investors grew more confident about revenue opportunities linked to artificial intelligence (AI).
Nair also said easing geopolitical concerns supported sentiment, following indications that potential US military action against Iran was unlikely before the US midterm elections. The developments helped moderate crude oil prices, he added.
Asian equity markets delivered a mixed performance. Japan's Nikkei 225 closed marginally lower, while Shanghai's SSE Composite and Hong Kong's Hang Seng indices ended higher. South Korean markets remained closed.
European equity markets were trading higher during the session, while US markets had ended mostly lower on Thursday.
Despite Friday's rebound, foreign investor selling remained a concern. Foreign Institutional Investors (FIIs) sold equities worth Rs 12,943.58 crore on Thursday, according to exchange data.
The recovery followed a steep decline in the previous session. On Thursday, the Sensex plunged 1,045.46 points, or 1.44%, to close at 71,593.24. The Nifty dropped 371.25 points, or 1.64%, to settle at 22,231.80.
Friday's gains helped the benchmark indices recover a portion of their previous losses, with IT stocks, easing crude prices and renewed buying interest providing support.
Investors will continue to monitor quarterly corporate earnings, foreign fund flows, crude oil movements and geopolitical developments for further direction. While Friday's rebound offered some relief after the recent sell-off, the sustainability of the recovery will depend on whether buying momentum broadens across sectors and global uncertainties ease further.
