Nifty snaps longest losing streak in nearly a year, reclaims 24,200; Sensex jumps over 600 points
ADVERTISEMENT
Indian equity benchmarks staged a strong rebound on Thursday, snapping their longest losing streak in nearly a year, as easing global bond yields and positive overseas cues triggered a relief rally after seven sessions of declines.
The Nifty 50 surged 153.55 points, or 0.64%, to settle at 24,231.85, breaking a seven-session losing streak, while the Sensex gained 628.04 points, or 0.82%, to 77,537.72. The Nifty's seven-session slide was its longest since September 2025, when the benchmark had last recorded a similar run of losses.
US Treasury move triggers global relief rally
The key trigger for Thursday's recovery came from global bond markets. The US Treasury announced it would double the size of its buyback operations for longer-duration government debt, helping ease concerns over rising long-term borrowing costs.
The move pushed US Treasury yields lower and weakened the dollar, improving risk appetite across global equity markets. Asian stocks also traded higher, while Wall Street had snapped its own three-session losing streak overnight. The improvement in global bond-market sentiment provided Indian equities with some relief after a week of persistent selling pressure.
The decline in yields was particularly supportive for technology and financial stocks, which led the domestic recovery. Mirae Asset Sharekhan also attributed the rebound to falling US bond yields, short-covering activity and selective buying in heavyweight stocks.
IT, financials lead broad-based recovery
Buying was visible across the market, with 41 of the 50 Nifty stocks ending higher. Eternal emerged as the top Nifty gainer, rising 2.48%, while Kotak Mahindra Bank, ITC and Bharti Airtel were among the other major contributors.
The broader market also participated in the recovery. The Nifty Midcap 100 rose 262 points, or 0.41%, to 63,672, while the Nifty Bank gained 256 points, or 0.45%, to 57,496.
Fourteen of the 16 major sectoral indices ended higher. The Nifty IT index gained around 0.8%, while financial stocks also advanced. Nifty Financial Services and Private Bank indices rose 0.73% and 0.89%, respectively. The Nifty Media index was the best performer, gaining 2.13%, followed by Realty at 1.41%.
At the other end, Hindalco was the biggest Nifty loser, declining 0.88%. Power Finance Corporation and REC also fell sharply after Morgan Stanley downgraded the stocks.
Rupee gains marginally as crude remains above $90
The rupee pared its initial gains and settled 3 paise higher at 95.70 against the US dollar, as support from a weaker dollar was offset by elevated crude oil prices.
The dollar index fell to its lowest level since late May following the US Treasury's buyback announcement, while Brent crude rose 2.22% to $93.65 per barrel, keeping pressure on India's import bill.
“Rupee pared initial gains on rising crude oil prices,” said Anuj Choudhary, research analyst at Mirae Asset Sharekhan.
“However, a falling US dollar amid diminishing rate hike expectations may support the rupee at lower levels. Traders may take cues from weekly unemployment claims data from the US. USDINR spot price is expected to trade in a range of 95.50 to 96,” he added.