Indian equities rebound after sharp sell-off; Sensex, Nifty end higher on broad-based buying

Indian equity markets bounced back on Thursday, recovering from the previous session's sharp sell-off as buying interest across most sectors lifted benchmark indices. Although late-session profit-booking trimmed gains, the Sensex and Nifty closed in positive territory, while broader markets significantly outperformed.

Markets recover as broader indices outperform

The BSE Sensex settled at 76,782.14, up 278.54 points or 0.36 per cent, while the NSE Nifty 50 ended at 23,972.65, gaining 90.60 points or 0.38 per cent.

According to SBI Securities, Indian equities staged a smart recovery after Wednesday's steep decline, though selling pressure in the final hour restricted gains in both benchmark indices to around 0.3 per cent.

The rebound was more pronounced in the broader market. The Nifty Midcap 100 rose 1.4 per cent, while the Nifty Smallcap 100 gained 1.8 per cent, outperforming the frontline indices.

Sectorally, all NSE indices except Auto and IT ended in the green. Nifty Realty emerged as the top performer, advancing 3.5 per cent.

IMF outlook boosts investor confidence

SBI Securities attributed the market's recovery in part to the International Monetary Fund's latest assessment of India's economic prospects.

The brokerage said, "Market recovery was largely supported by the IMF's latest assessment that India remains among the fastest-growing major economies despite a challenging global environment. While the IMF marginally lowered its FY27 growth forecast to 6.4% from 6.5% earlier, the resilience of domestic demand, strength in services activity and an upgrade to its FY28 growth outlook (from 6.5% to 6.7%) reinforced confidence in India's medium-term growth trajectory."

It added that the IMF also pointed to stronger-than-expected recent economic data and encouraging high-frequency indicators, suggesting that India's underlying economic momentum remains intact.

Analysts see positive market structure despite volatility

Market experts said benchmark indices continued to trade above crucial support levels, indicating that the broader market structure remains constructive.

Riyank Arora, Associate Vice President – HNI & Derivatives at Hedged.in, said, "Indian equity markets ended higher in today's session, extending their positive momentum as buying interest emerged across key sectors. The benchmark indices managed to close above important support levels, keeping the broader market structure positive."

On the technical outlook, Arora said, "Immediate support is placed around 76,500-76,300, while resistance is seen near 76,900-77,100. A breakout above this range could strengthen the ongoing bullish trend."

He further added, "The market continues to display resilience despite intermittent volatility. As long as benchmark indices hold above their key support levels, the broader outlook remains constructive. Traders may continue to adopt a buy-on-dips strategy while maintaining disciplined risk management."

Asian markets presented a mixed picture during the session. Japan's Nikkei 225 rose 1.99 per cent to 68,175.00, while Singapore's Straits Times Index gained 1.18 per cent to 5,433.88. The GIFT Nifty also traded 0.44 per cent higher at 23,983.50. However, Hong Kong's Hang Seng Index and Taiwan's Weighted Index ended lower.

In the commodities market, Brent crude futures edged up 0.10 per cent to USD 78.10 per barrel, while gold prices gained 0.85 per cent to USD 4,109.91 per ounce.

Meanwhile, Dow Jones Futures slipped 0.04 per cent to 52,326.73, while Nasdaq Futures advanced 0.20 per cent to 25,870.65.

(With inputs from ANI)