1 week ago
Indian Stock Markets Rebound as Global Yields Ease
India’s main stock markets rose sharply early on Thursday.
The Sensex gained more than 500 points, while the Nifty moved back above 24,198.
Both indexes had recently fallen for several days.
Markets in the United States and Asia also improved.
US Treasury yields fell after plans were announced to buy back more long-term government debt.
This made investors feel more comfortable taking risks.
Foreign investors also bought Indian shares on Wednesday.
However, concerns about tensions in the Middle East could still make investors cautious.
The Sensex rose 504.32 points to 77,416.16 in early Thursday trading.
The Nifty gained 118.85 points to reclaim 24,198.55 after seven sessions of losses.
All 30 Sensex companies traded higher, led by Eternal, Infosys, Tech Mahindra, Bajaj Finance, Tata Consultancy Services and HCLTech.
Foreign Institutional Investors bought Indian equities worth Rs 407.99 crore on Wednesday.
Global markets recovered as lower US Treasury yields improved risk sentiment, although Middle East tensions remained a concern.
- Who
- Indian equity investors, foreign institutional investors and companies listed on the Sensex and Nifty.
- What
- The Sensex and Nifty rebounded strongly in early trading after several sessions of losses.
- Where
- Indian stock exchanges, with the recovery supported by movements in US and Asian markets.
- When
- Thursday morning in early trade; the previous session was Wednesday.
- Why
- Lower US Treasury yields, stronger global markets and fresh foreign fund inflows improved investor sentiment, while Middle East tensions remained a risk.
Positive Market View
Cautious Market View
Near-term outlook
Positive Market View
Analysts said the rebound on Wall Street, gains in Asian markets, easing US Treasury yields and foreign inflows created a supportive backdrop for Indian equities.
Cautious Market View
Analysts cautioned that persistent geopolitical uncertainty in the Middle East could keep investors wary despite the global market recovery.
Key facts
- Sensex
- Rose 504.32 points to 77,416.16 in early trade.
- Nifty
- Gained 118.85 points to 24,198.55.
- Foreign fund activity
- Foreign Institutional Investors bought equities worth Rs 407.99 crore on Wednesday.
- US 10-year Treasury yield
- Declined to 4.65 per cent after the US Treasury announced plans to more than double long-dated debt buybacks.
- US market performance
- The S&P 500 rose 0.21 per cent, the Nasdaq Composite gained 0.16 per cent and the Dow Jones Industrial Average added 120 points.
- Crude oil
- Brent crude traded 0.20 per cent higher at USD 91.87 per barrel.
- Previous Indian close
- The Sensex fell 325.78 points on Wednesday, while the Nifty declined 76.60 points.
Quotes
Rajesh Palviya
Head of Research at Axis Direct
“"US indices halted a three‑day losing streak after the US Treasury announced plans to more than double long‑dated debt buybacks, pulling the 10‑year Treasury yield down to 4.65 per cent. The S&P 500 gained 0.21 per cent, the Nasdaq Composite rose 0.16 per cent, and the Dow Jones Industrial Average added 120 points."”
telegraphindia.com
“"The decline in US bond yields indicates a positive potential construct for equity markets, globally."”
telegraphindia.com
Ponmudi R
CEO of Enrich Money, an online trading and wealth‑tech firm
“"Indian equity markets are expected to trade with a firmer undertone, supported by an overnight rebound on Wall Street and gains across Asian markets after easing US Treasury yields improved global risk sentiment."”
telegraphindia.com
Sources
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