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Sensex shoots up over 1,500 points, closes at three-week high: Why were markets up today?
Banking, IT and Reliance Industries shares led the broad-based rally, supported by softer crude prices and enthusiasm over Jio Platforms’ proposed IPO.
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Benchmark stock index Sensex rallied 1,534 points, or over 2 per cent, to close at a three-week high on Thursday, driven by heavy buying in banking, IT and Reliance Industries shares amid easing crude oil prices.
The 30-share BSE Sensex jumped 1,533.72 points, or 2.11 per cent, to settle at 74,315.61, near the day's high. During the session, it surged 1,548.4 points, or 2.12 per cent, to 74,330.29.
The 50-share NSE Nifty climbed 374.65 points, or 1.66 per cent, to close at 22,997.35, its highest level since September 25.
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Among the 30 Sensex constituents, Tech Mahindra jumped 4.61 per cent, followed by ICICI Bank at 4.17 per cent, Bharti Airtel at 2.94 per cent, Eternal at 2.77 per cent, HCLTech at 2.58 per cent, HDFC Bank at 2.51 per cent and TCS at 2.28 per cent.
Reliance Industries surged 4.03 per cent after its digital and telecom arm, Jio Platforms, set a price band of ₹1,065 to ₹1,119 per share for its initial public offering (IPO). The offering could raise about ₹30,213 crore at the top of the price range, making it India's largest IPO.
The IPO, comprising a fresh issue of up to 27 crore equity shares with a face value of ₹10 each, opens for subscription on Wednesday, October 21, and closes on Friday, October 23.
Bharat Electronics, Trent and Hindustan Unilever were the laggards among Sensex constituents.
Brent crude, the global oil benchmark, declined 2.34 per cent to USD 103.6 per barrel.
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"Indian equities rallied sharply as concerns over stretched AI valuations and higher US inflation triggered a sell-off across tech-heavy global markets, improving India's relative appeal and encouraging rotation toward domestic large-cap technology, private financials and defensive heavyweights," PTI news agency quoted as saying Vinod Nair, Head of Research, Geojit Investments Limited, said.
Correcting bond yields, rupee stability and softening crude prices further supported sentiment, while hopes of possible reconsideration of equity taxation added to risk appetite, Nair added.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,857.44 crore on Wednesday, according to exchange data.
"Indian equity benchmarks staged a broad-based rebound on Thursday as buying gathered pace through the session. The gains erased Wednesday's losses, with both indices holding near their intraday highs despite a weak global backdrop. Information technology stocks led the advance, while private banks, automakers and oil and gas companies also attracted strong buying interest," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, was quoted as saying.
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The rebound has improved the near-term tone, supported by IT strength, enthusiasm around the Jio offering and a firmer rupee, he added.
In Asian markets, South Korea's Kospi tumbled 7.57 per cent, while Japan's 225 index fell 4.90 per cent. Shanghai's SSE Composite index and the Hang Seng index also ended lower.
Markets in Europe traded mixed, while US markets ended lower on Wednesday.
On Wednesday, the Sensex fell 251.89 points, or 0.34 per cent, to 72,781.89. The Nifty dropped 99.25 points, or 0.44 per cent, to end at 22,622.70.
