Stock market today: Benchmark indices Sensex and Nifty 50 rebounded on Thursday after Wednesday’s decline, supported by gains in information technology (IT), auto and private banking stocks, which lifted sentiment on Dalal Street. The Sensex surged 1,125 points, or 1.55 per cent, to hit an intraday high of 73,907. The Nifty 50, meanwhile, climbed 328 points, or 1.45 per cent, to touch a high of 22,950.
As of 11 AM, both benchmarks were trading close to their intraday highs. The Sensex was up 1,080 points, or 1.49 per cent, at 73,863, while the Nifty 50 gained 313 points, or 1.38 per cent, to trade at 22,935.
Sectorally, the Nifty IT index led the gains, rising over 2.4 per cent. The Nifty Auto and Nifty Private Bank indices followed, advancing 1.71 per cent and 1.55 per cent, respectively. Buying interest also extended to the broader markets, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 0.38 per cent and 0.26 per cent, respectively.
Among Sensex constituents, HCL Technologies, Tech Mahindra, Tata Consultancy Services (TCS), Bharti Airtel, Reliance Industries and Maruti Suzuki were the top gainers, rising between 2.5 per cent and 3.5 per cent. On the other hand, Trent, Bharat Electronics, Power Grid Corporation of India and Titan were the only stocks trading in the red. Check - TOP GAINERS NSE | TOP LOSERS NSE
Stock market rally today: Key reasons
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IT stocks rally: A heavy buying in IT stocks aided to the market's rally. On Thursday, the Nifty IT index surged 2.4 per cent, extending the winning streak to the third straight session. The index has zoomed nearly 9 per cent in three sessions. READ MORE
VK Vijayakumar, chief investment strategist, Geojit Investments, said that the strength in the IT stocks follows the results of HCLT and the optimism surrounding that will hold the IT index strong. He added that the hotter-than-expected US inflation print triggered a big selling in the US market which led to a sharp correction of 1.88 per cent in the tech-heavy Nasdaq. AI stocks bore the brunt of the selling. The fear has spread to South Korea and Japan impacting their markets today. From the Indian market perspective, he said that the "correction in AI stocks is a positive".
"FIIs who have been selling Indian stocks and buying AI stocks will halt this trend and under favourable conditions might even reverse it," he said.
Rupee appreciates: The rupee appreciated 31 paise to 94.86 against the US dollar in on Thursday, supported by the ongoing impact of the RBI's structural forex interventions and liquidity-tightening measures. On Wednesday, the rupee appreciated 19 paise to close at 95.17 against the US dollar. Experts said that the unwinding of long dollar positions is also helping in the recovery.
"The rupee has now crossed 95.50-95 range, bringing 94.80 into focus. A sustained break below 94.80 could open the door to another 50-75 paise of appreciation. And the reduced direct dollar demand from oil companies could support the momentum," Amit Pabari, founded, CR FOREX, said. ALSO READ: Nifty IT rallies 9% in 3 sessions: 3 key factors driving the momentum
Oil prices ease: Oil prices fell more than $1 as investors weighed Strait of Hormuz supply risks against US moves to ease shipping costs. Brent crude, the global oil benchmark, was trading lower by 1.64 per cent at USD 104.3 per barrel in futures trade. WTI crude cracked 1.05 per cent to $94.09.
Nifty technical view: Jatin Gedia, VP, technical research, Teji Mandi Investment Technologies, said that if Nifty sustains above 22,550 and surpasses the immediate hurdle at 22,800 (the previous swing high), it could trigger a short-covering rally towards 23,000-23,150. The daily momentum indicator has a positive crossover and investors should use this pullback toward the neckline as a buying opportunity. Inability to surpass the 22,800 resistance zone could lead to more consolidation between 22,300 - 22,800.
Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.