Indian equity benchmarks staged a sharp recovery on Thursday after several subdued trading sessions, supported by broad-based buying across sectors. Positive cues from global markets and active participation from domestic investors strengthened market sentiment during early trade.
The BSE Sensex opened more than 400 points higher, while the NSE Nifty 50 crossed the 23,550 mark in early trading. Gains in pharma, metal, banking and IT stocks led the market advance.
In opening trade, the BSE Sensex rose nearly 426 points to reach 74,968, while the NSE Nifty gained 144 points to trade above 23,557. The rally improved investor sentiment and renewed optimism on Dalal Street.
Pharma and metal stocks recorded the best gains during the session. According to market experts, improving demand for metals in international markets and stability in raw material prices supported metal companies. Increased investor interest in the pharma sector was attributed to expectations of better quarterly earnings and steady demand in global healthcare markets. Shares of Sun Pharmaceutical Industries, Dr. Reddy's Laboratories and Tata Steel traded higher in early deals.
Banking and IT stocks also contributed to the market rally. Analysts said the potential return of foreign investors and improving conditions in global technology markets were reflected in Indian IT shares. Stocks such as Infosys, HDFC Bank and ICICI Bank also supported the gains in benchmark indices.
The market rally also led to a notable increase in investor wealth, with most Nifty 50 constituents trading in positive territory during early trade, indicating broad market strength.
Analysts attributed the market gains to positive signals from US and Asian markets, better quarterly earnings from companies, the potential return of foreign institutional investors, b domestic investor buying and improving global risk appetite.
The recent rally in US markets, particularly in technology stocks, also had a positive impact on Indian equities.
