Indian equity benchmarks rebounded sharply on Friday, shaking off the previous session's rout. The BSE Sensex surged over 800 points in intraday trade, while the NSE Nifty 50 climbed past the 22,500 mark. At 11:58 a.m., the Sensex pared some of the gains to trade 696.79 points, or 0.97% higher at 72,290.03, whereas the Nifty was up 220.75 points, or 0.99% at 22,452.55.
Here are the five key factors driving the recovery on Dalal Street today:
1. IT Rally
Buying in technology stocks anchored the market's recovery. Shares of Tata Consultancy Services Ltd. surged 5% after the IT major reported strong September quarter results, fueled by accelerating AI-related revenue and international business growth. The broader IT pack, including Infosys Ltd., Wipro Ltd., and HCLTech Ltd., rallied in tandem, shrugging off Thursday's US PERM green-card suspensions.
2. Value Buying
Investors scooped up shares at lower valuations following Thursday's brutal sell-off. The benchmark indices had slipped into oversold territory, prompting a sharp technical rebound as market participants capitalized on multi-year lows to accumulate high-quality blue-chip stocks.
3. Slip In Oil Prices
Cooling crude oil prices offered significant relief to domestic equities. Brent crude, the global energy benchmark, declined 1.11% to $103 per barrel. The drop in energy prices eases immediate concerns over India's import bill and inflation trajectory.
ALSO READ: LIVE: Sensex Jumps 800 Points, Nifty 50 Above 22,500 Led By IT, Banks; TCS, Wipro, HCL Tech Lead
4. Rupee Rebound
The Indian currency appreciated 23 paise to 96.65 against the US dollar in early trade. A slight softening in the greenback, coupled with likely intervention by the Reserve Bank of India, supported the rupee and boosted overall foreign investor sentiment.
5. Easing Geopolitical Concerns
Global market anxiety cooled after US President Donald Trump signaled that any potential military action against Iran would be paused until after the midterm elections. This de-escalation stabilised Asian markets, provided firm global cues, and spurred risk-on appetite among domestic investors.
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