Sensex Jumps 504 Points on US Yield Drop, Nifty Ends 7-Day Losing Run

Indian stocks snapped a four-day losing streak on Thursday, the Sensex jumping 504 points and the Nifty climbing 118 points after the US Treasury said it would more than double buybacks of long-dated debt.

The 10-year yield fell to 4.65%, its lowest in two weeks. The move halted a three-day slide on Wall Street: the S&P 500 gained 0.21%, the Nasdaq rose 0.16%, and the Dow added 120 points.

Foreign investors bought into the rebound. FIIs purchased equities worth ₹408 crore on Wednesday, exchange data showed, following several sessions of net selling.

Asian markets rallied. South Korea's Kospi surged 5.74%. Japan's Nikkei, Hong Kong's Hang Seng and Shanghai's composite index all traded higher.

In Mumbai, all 30 Sensex components opened in positive territory. Infosys, carrying an Alpha Score of 57 on AlphaScala, rose more than 2%. Tech Mahindra, Tata Consultancy Services and HCL Tech also led.

"The decline in US bond yields indicates a positive potential construct for equity markets globally," said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

Ponmudi R, CEO of Enrich Money, said Indian markets should trade with a firmer undertone after the US rebound and easing yields. He added a caveat: "Persistent geopolitical uncertainty in the Middle East is likely to keep investors cautious."

Brent crude edged up 0.2% to $91.87 a barrel.

The recovery followed a brutal stretch. The Sensex had lost 326 points on Wednesday. The Nifty had fallen for seven straight sessions, its longest losing run in months.

Traders said the next catalyst for Indian markets would be global rate expectations. The 10-year yield at 4.65% is a level that could attract further foreign buying if it holds through the week, several dealers said.