Indian equity markets staged a strong rebound on Thursday, with the BSE Sensex gaining over 600 points and the NSE Nifty 50 reclaiming the crucial 24,000 mark during intraday trade. The recovery comes a day after one of the sharpest sell-offs in recent months, as investors returned to quality stocks on attractive valuations. Positive Asian market cues, easing fears of an immediate escalation in the Middle East conflict, and continued buying by Foreign Institutional Investors (FIIs) are the key factors that lifted sentiment across Dalal Street.

1. Bargain Hunting After Yesterday’s Sharp Sell-Off

The biggest driver of today’s rally is aggressive bargain hunting after Wednesday’s 2% correction wiped out nearly ₹8 lakh crore in investor wealth. Investors used the sharp decline as an opportunity to accumulate fundamentally strong large-cap stocks, particularly in banking, financials, and energy, leading to a broad-based recovery across the market.

2. Easing Concerns Over the US-Iran Conflict

Investor sentiment improved after comments from US President Donald Trump suggested that a full-scale war with Iran was unlikely despite heightened geopolitical tensions. Although the situation remains fluid, the absence of fresh military escalation reduced panic selling and encouraged investors to re-enter equity markets.

3. Positive Global Market Cues

Asian markets traded higher following overnight stability in global equities, providing a supportive backdrop for Indian markets. Investors also expect central banks to remain cautious on monetary tightening, improving overall risk appetite. The positive global setup encouraged buying across most sectoral indices.

4. FII Buying and Stable Rupee Support Sentiment

Foreign Institutional Investors continued to remain net buyers despite recent volatility, reflecting confidence in India’s medium-term growth outlook. Meanwhile, the Indian rupee remained relatively stable despite elevated crude oil prices, reducing concerns over imported inflation and supporting market sentiment.

5. Banking, Reliance and Pharma Stocks Lead the Recovery

Heavyweight stocks including ICICI Bank, HDFC Bank, and Reliance Industries led today’s rebound, while pharmaceutical stocks outperformed due to their defensive nature. Broad-based buying was visible across 14 of the 16 major sectoral indices, with midcap and smallcap indices also outperforming the benchmarks. However, IT stocks remained under pressure ahead of the earnings season, limiting the overall upside.

Key Technical Analysis

Sensex Technical Outlook

The Sensex has witnessed a strong pullback after yesterday’s steep decline, reclaiming the 77,000–77,100 zone with healthy market breadth. The recovery indicates that buyers are defending key support levels. Immediate resistance is placed near 77,500–77,700, while support is seen around 76,700. Sustaining above 77,000 could trigger further short covering and extend the recovery towards the 78,000 mark.

Nifty 50 Technical Outlook

The Nifty 50 has bounced back above the psychological 24,000 level after briefly breaching key support in the previous session. The index is attempting to regain bullish momentum, with immediate resistance at 24,100–24,150 and support near 23,850. A decisive close above 24,100 would strengthen the short-term outlook and could pave the way for a move towards 24,300.

Bank Nifty Technical Outlook

Bank Nifty has outperformed the broader market, driven by strong buying in private banking heavyweights. The index continues to hold above its crucial support zone and is showing signs of renewed bullish momentum. Immediate resistance is placed near 57,300–57,500, while support is seen around 56,700. Sustained buying above current levels could lead to further gains in the coming sessions.

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