Stock markets recovered most of their early losses on Thursday, helped by gains in IT stocks and a sharp rebound in the rupee, after a weak start triggered by global tensions.
The BSE Sensex was trading at 73,215.15, up 80.83 points or 0.11% at 3:02 pm. The index also showed an indicative close of 73,177.32, up 43 points or 0.06%.
The Nifty 50 was at 22,670.30, down just 9.10 points or 0.04%, after recovering from sharp intraday losses. The index had touched a high of 22,706.65 and a low of 22,182.55 during the session.
Earlier in the day, both Sensex and Nifty had fallen nearly 2%, reacting to fresh comments from US President Donald Trump, who said the United States would hit Iran “extremely hard” in the coming weeks.
The sharp fall had raised concerns of a deeper correction. However, markets gradually recovered as the session progressed.
RUPEE RECOVERY LIFTS SENTIMENT
A key reason for the rebound was the sharp recovery in the Indian rupee.
The currency strengthened nearly 2% to 92.94 against the US dollar after the central bank introduced measures to curb speculation.
The stronger rupee helped improve investor sentiment and supported equities during the day.
IT STOCKS LEAD THE BOUNCE
IT stocks played a major role in lifting the market. The Nifty IT index rose about 2.4%, as investors positioned ahead of upcoming quarterly earnings.
Among Sensex stocks, gains were seen in HCLTech, Tech Mahindra, Infosys and TCS, which supported the recovery.
Other gainers included Maruti, Titan, Bajaj Finance, HDFC Bank, Trent, BEL, IndiGo and Axis Bank.
However, several stocks remained under pressure. Losers included Asian Paints, Eternal, Sun Pharma, NTPC, Reliance, Power Grid, Bajaj Finserv, Ultratech Cement, M&M and Adani Ports.
MARKET STILL UNDER PRESSURE FOR THE WEEK
Despite the recovery, the broader trend remains weak. The benchmark indices are down about 0.6% so far this week and are on track for a sixth straight week of losses.
Also, most sectors remained in the red during the session, showing that the recovery was not broad-based.
The recovery suggests that markets are trying to stabilise after the sharp fall, but volatility is likely to remain high.
Global developments, especially around the Iran conflict, along with currency movement and upcoming earnings, will continue to guide market direction in the near term.
