Benchmark equity indices rebounded sharply on Thursday, with the BSE Sensex rising by more than 900 points and the Nifty 50 climbing back above the 24,750 level. The recovery was largely driven by gains in major stocks, particularly Reliance Industries.
By the end of the trading session, the Sensex had surged around 900 points, while the Nifty closed above 24,750 as investors took advantage of lower valuations and bought stocks that had recently declined during the market correction.
Reliance Industries was among the biggest contributors to the rally, advancing about 3 percent and providing significant support to the benchmark indices.
The market recovery occurred despite ongoing worries about rising crude oil prices and geopolitical tensions in West Asia, factors that have recently affected global markets and investor sentiment.
According to market participants, the sharp rise was mainly technical after the benchmark indices had slipped into oversold territory in recent sessions. Analysts noted that the earlier correction pushed the market to deeply oversold levels, triggering a relief rally as traders moved to cover short positions.
Lower volatility also helped the recovery, with the India VIX easing from previously high levels. This suggested that much of the geopolitical risk had already been factored into prices during the earlier decline.
From a derivatives perspective, the rebound was supported by short covering and improved options positioning. The Nifty Put–Call Ratio had dropped to relatively low levels, reflecting excessive pessimism among traders, which often leads to a temporary market bounce.
As the index remained above key support levels between 24,100 and 24,300, fresh put writing and unwinding of bearish positions emerged, indicating traders’ belief that immediate downside risk could be limited.
Strong buying by domestic institutional investors also helped stabilise the market, even as foreign institutional investors remained cautious due to global uncertainties.
However, analysts warned that high crude oil prices continue to pose a macroeconomic challenge for India. As a result, the current market rise is largely being viewed as a technical recovery supported by derivatives activity and selective value buying after the recent fall.
Despite the risks, Thursday’s surge indicates that investors are willing to return to the market at lower levels, even as geopolitical developments and commodity price movements remain important factors to watch.
