Nifty rises 0.77% to 24,065 as midcaps outperform. Dr. Reddy's plunges 5%, INFY slips before IT earnings. Crude above ₹7,100, rupee near ₹95.5 – key risks as FII flows watched.
Markets bounced back Thursday midday, with the Nifty 50 reclaiming 24,065 – up 0.77% – and the Sensex rising 551 points to 77,055. The recovery comes a session after a sharp selloff triggered by escalating tensions in West Asia.
Broader indices outpaced the benchmarks by a wide margin. The Nifty Midcap 100 gained 1.48% and the Nifty Small Cap 100 climbed 1.70%, suggesting risk appetite returned faster to smaller names. On the BSE, advancers beat decliners nearly three to one: 2,876 stocks rose, 1,092 fell.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, described the move as a smart recovery after the previous day's correction. He flagged the weekly Sensex expiry as an added source of intraday volatility.
Not all sectors participated. Dr. Reddy's Laboratories was the worst Nifty 50 performer, crashing 5.31% to ₹1,277.40 on exceptionally heavy volume – over 61 lakh shares worth nearly ₹80 crore. The drop came without any company announcement, raising questions about undisclosed developments or positioning unwinding. INFY stock page lost 1.34% ahead of the IT earnings season, with TCS results due later Thursday. The stock carries an Alpha Score of 57 (Moderate), pointing to mixed signals.
On the upside, Grasim Industries led gainers with a 2.71% advance. Bharti Airtel rose 2.61% on strong volumes, while Sun Pharmaceutical added 2.50% – notable after JPMorgan upgraded the sector to Neutral. SBI Life Insurance and Shriram Finance also climbed more than 2%.
Shah identified Nifty support at the 23,910–23,930 zone and resistance at 24,160–24,180. A break above the higher end could open a move toward 24,380. Options data showed heavy call writing at the 24,100 and 24,200 strikes, while 24,000 on the put side held substantial open interest. For the Sensex, support sits at 76,700 and resistance at 77,500.
Commodity markets added to the day's cross-asset tension. MCX crude traded above ₹7,100 per barrel, with the Strait of Hormuz shipping slowdown keeping supply risk in focus. MCX gold opened with a gap down near ₹1,43,400, while COMEX gold hovered below $4,100. Silver held above ₹2,22,000 on MCX and $58 on COMEX. The rupee remained pinned near ₹95.5 against the dollar, with immediate resistance at ₹95.6 keeping pressure on the currency.
Geopolitical developments in the Middle East are the overriding risk for the session. Commercial traffic through the Strait of Hormuz has slowed after the latest U.S.-Iran escalation, traders said. With crude elevated and the rupee weak, foreign institutional investor flows become the key swing factor. FIIs bought ₹1,962 crore worth of equities Wednesday. Whether that buying sustains through the afternoon will determine if the recovery holds above 24,000.
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