Easing global bond yields spark 628-point Sensex rally, Nifty ends 7-day losing streak at 24,231. IT and financial stocks lead. Analysts at Geojit and HST Wealth weigh in.
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Easing global bond yields and a US Treasury intervention revived risk appetite Thursday. The Sensex surged 628.04 points to 77,537.72, snapping a four-session decline. The Nifty gained 153.55 points to 24,231.85, ending its longest losing streak in nearly 11 months.
"Markets found much-needed relief after the US Treasury stepped in to contain the surge in global bond yields, triggering a strong broad-based rebound," said Vinod Nair, Head of Research at Geojit Investments Ltd. The dollar softened, the rupee firmed, and yield pressures eased, boosting the appeal of emerging markets, he added.
Nair struck a cautious note: "Yet, the market's optimism remains guarded as stubbornly high crude oil prices, driven by unresolved US-Iran tensions, continue to cast a shadow over inflation and corporate profitability."
The rebound was led by IT and financial stocks, two sectors that benefit most from a lower yield environment. Among the top Sensex gainers were ITC, Kotak Mahindra Bank, Bajaj Finance, and UltraTech Cement. Laggards included Tata Steel, InterGlobe Aviation, HCL Tech, and Titan.
"The recovery marked a decisive shift from the cautious tone that had dominated recent sessions," said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a SEBI-registered research firm. Foreign institutional investors bought equities worth Rs 407.99 crore on Wednesday, exchange data showed.
Asian markets also rallied. South Korea's Kospi surged 5.89%, while Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng all closed higher. US markets ended in positive territory Wednesday.
Crude oil jumped 2.67% to $93.91 a barrel on Thursday, adding to the inflation concerns Nair flagged. The combination of a bond-market intervention and elevated oil prices leaves the Indian market's next move tied to global yield and crude trajectories.
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