- Nifty 50 rose 0.58% to 24,218.40, ending a seven-session losing streak
- Sensex gained 0.69% to 77,437.21 amid firmer global markets and bank support
- Brent crude hit near $92 on stalled Iran talks and low Strait of Hormuz traffic
The Nifty 50 ended a seven-session losing streak on Thursday, rising 0.58% to 24,218.40, while the Sensex gained 0.69% to 77,437.21. The recovery came as global markets turned firmer, private-sector banks supported the benchmark and the Nifty found support around the 24,000 level.
The rebound came despite continued pressure from crude oil, geopolitical uncertainty and a weak rupee. Brent crude rose for a fourth straight session to near $92 as talks with Iran remained stalled and traffic through the Strait of Hormuz stayed well below pre-war levels.
Here are three reasons behind the Nifty's rebound.
Global Cues
Global markets provided support to Indian equities. S&P 500 futures were up about 0.1%, while Nasdaq-100 futures gained 0.4%. Dow Jones Industrial Average futures rose 25 points, or 0.05%.
US equities had also recovered on Wednesday, with the S&P 500 snapping a three-session losing streak. Longer-dated US Treasury yields pulled back from multi-year highs after the government unveiled a plan to ease pressure from a recent bond market rout.
Asian markets were largely higher. The Hang Seng Index rose 1.34%, the Nikkei 225 gained 1.36% and the Shanghai Composite advanced 0.24%. The Kospi rose 5.89%.
The rupee, however, weakened 7 paise to close at 95.75 per dollar, its lowest level in August. With the US Dollar Index softening and crude prices stable, the rupee is positioned to open with an upward bias.
Oil, Geopolitics
Crude oil remained a source of pressure for markets. Brent crude rose for a fourth straight session to near $92 as talks with Iran remained stalled and traffic through the Strait of Hormuz stayed well below pre-war levels.
Geopolitical concerns had already weighed on sentiment after a critical ceasefire expired without a resolution. The 60-day deadline lapsed with both sides maintaining an aggressive stance.
The recent sell-off also hit chemical, media and cement stocks, while IT, pharma and consumer durables showed some resilience.
Higher long-term bond yields in the US, Germany and Japan have added to the pressure on emerging-market equities by improving the appeal of developed-market bonds.
Support, Banks
The Nifty has corrected about 750 points from its recent peak and retraced 61.8% of the rally from the July 24 low of 23,606 to the August 3 high of 24,774.
Mr. Devarsh Vakil, Head of Prime Research at HDFC Securities, said the 61.8% retracement is a key level that can determine whether the trend continues or reverses.
"The bullish structure remains intact only as long as the upward-sloping trendline connecting the April, June and July swing lows holds," Vakil said, adding that strong support is clustered around 24,000.
"On the upside, immediate resistance has now shifted down to 24,300," he said. A sustained close above that level would be the first sign of stabilisation and could pave the way for a meaningful pullback.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the frontline indices remained in a narrow range after an initial gap-up opening, indicating consolidation.
"Nifty, in particular, has remained confined to an extremely tight 42-point range since the opening," Shah said, reflecting a cautious approach among market participants at higher levels.
Private-sector banks provided support to the benchmark indices. HDFC Bank was the top contributor to the Nifty's gains, helping the index maintain its positive bias despite limited directional momentum, according to Shah.
Market activity remained subdued, with traders waiting for fresh triggers that could provide a decisive breakout from the current intraday consolidation.
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