Indian Stock Markets on Thursday witnessed a bumper rally as the Sensex spike over 1500 points with the key sectors like Information Technology (IT), auto, private banks shine.
At close, the Sensex was up 1,533.72 points or 2.11 percent at 74,315.61, and the Nifty was up 374.65 points or 1.66 percent at 22,997.35.
Among the sectors, the gainers were auto, IT, Infra, Oil & Gas, Private Bank and Realty up in range of 1-1.8%, while Media and PSU Bank indices down over 1% each.
On Nifty, the gainers were Tech Mahindra, ICICI Bank, Bharti Airtel, HCL Technologies, Reliance Industries, while losers included Nestle India, Trent, Adani Enterprises, Shriram Finance and L&T.
Indian rupee extended its gains for the fifth consecutive session closing 10 paise higher at 95.05 per dollar compared with the previous close of 95.15.
Vinod Nair, Head of Research, Geojit Investments Limited said, “Indian equities rallied sharply as concerns over stretched AI valuations and higher US inflation triggered a sell-off across tech-heavy global markets, improving India’s relative appeal and encouraging rotation toward domestic large-cap technology, private financials and defensive heavyweights. Correcting bond yields, rupee stability and softening crude prices further supported sentiment, while hope of possible reconsideration of equity taxation added to risk appetite.”
“However, weakness in small and mid-caps and selling in PSU banks indicate that the rally lacks broad participation, suggesting benchmark gains may overstate underlying market strength. Near-term sustainability will therefore depend on Q2 earnings delivering on revenue and margins, broader market participation and evidence of returning foreign flows, while durable stability in oil and the currency remains crucial amid geopolitical and global inflation risks.”