Stock markets rose in afternoon trade on Thursday after a sharp fall in the beginning of the session, supported by buying in IT stocks. As of 3:40 pm, BSE Sensex was at 58,009.41, up 126.31 points or 0.22%, while NSE Nifty was at 22,713.10, up 33.70 points or 0.15%.
The recovery came after both the indices fell significantly in early trade amid weak global cues, with investors initially spooked by widespread selling in Asian markets, news agency PTI reported. At one point the Sensex had fallen by over 1,500 points, while the Nifty had fallen by nearly 500 points, reflecting the nervous mood at the start of the day.
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But the decline did not last long. Investors quickly stepped in to buy beaten-down IT stocks, leading to a strong comeback. Heavyweight stocks like Infosys, TCS, HCL Tech and Tech Mahindra saw solid gains of up to 3%, leading the rebound. Select large-cap names like HDFC Bank, Bajaj Finance, ITC and Maruti Suzuki also gained momentum, the report said.
That said, the recovery was not uniform across the board. Shares of several majors, including Reliance Industries, SBI, NTPC, Sun Pharma, Asian Paints and Adani Ports, remained under pressure, limiting sharp gains in the indices.
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The mood globally remained cautious. Asian markets closed lower and European indices also traded in the red, indicating continued uncertainty amid the ongoing conflict in West Asia. Adding to the concerns, Brent crude prices jumped more than 7% to above $108 a barrel, raising new concerns about inflation.
Mixed sentiments were also seen in investors’ activities. Foreign institutional investors (FIIs) continued to withdraw money, selling high-value equities ₹Trades worth Rs 8,300 crore were traded in the previous session, while domestic investors stepped in to offset the decline with strong buying, the report said.
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Despite the volatility, the rebound suggested investors were still willing to buy on dips, especially in sectors like IT, even as global risk appetite and rising oil prices kept the market on edge.
(With inputs from PTI)