Indian Stock Market Rebounds with Sensex Gaining Over 400 Points, IT Stocks Lead the Surge

Mumbai, October 9 (Daily Kiran) : The Indian stock market made a strong recovery on Friday, bouncing back from a previous decline. The BSE Sensex opened at 71,776.67, up 183.43 points or 0.26%. Meanwhile, the NSE Nifty 50 climbed 83.15 points or 0.37% to start at 22,314.95. As the day progressed, the Sensex surged by 452.95 points, reaching around 72,046, while the Nifty 50 rose by 167.05 points to trade at 22,398.In broader markets, the Nifty Midcap 100 index saw an increase of nearly 1%, while the Nifty Smallcap 100 index edged up by 0.01%. Sector-wise, the Nifty IT index experienced the most significant boost, soaring over 3%. Other sectors, including Nifty Media, Nifty PSU Bank, Nifty FMCG, and Nifty Private Bank, also recorded gains exceeding 1%. However, Nifty Pharma and Nifty Oil & Gas faced declines. Among the Nifty 50 stocks, TCS, Infosys, HDFC Life, Eicher Motors, Apollo Hospitals, and HCL Tech saw the highest gains.Conversely, stocks like BEL, Reliance, Cipla, BSE, and Coal India faced the most significant losses. In the commodities market, Brent crude oil prices remained above $103 per barrel due to rising tensions in the Middle East, which has reinstated supply-risk premiums. Market experts express concern over high crude oil prices and U.S. bond yields, suggesting that these factors contribute to a “sell on rally” sentiment in the near term. Analysts noted that persistent selling by foreign institutional investors (FIIs) has strengthened bearish sentiment, even affecting fundamentally strong companies.They believe that as long as crude oil prices and U.S. 10-year bond yields remain elevated, FII selling, particularly in large-cap stocks, is likely to continue. However, historical trends indicate that major corrections often present opportunities for long-term investors. Experts suggest that the current downturn could lead to gradual investment opportunities in quality stocks. Technical analysts have identified the 22,050 level as critical in the near term, with a potential for a short-term recovery given that the Nifty is approaching the lower Bollinger band.If the Nifty maintains levels above 22,290-22,350, there could be upward movement towards 22,440 to 22,600. Conversely, 22,140 is seen as a significant support level. Global cues remain mixed, with weakness in U.S. IT stocks and ongoing tensions in the Middle East impacting investor sentiment due to high oil prices. However, a slight easing in U.S. bond yields has provided limited relief to the market. On Thursday, FIIs sold shares worth ₹12,943 crore, while domestic institutional investors (DIIs) purchased ₹10,703 crore, offering some support to the market.So far in October, foreign investors have pulled out ₹36,210 crore from the Indian stock market, putting additional pressure on it.