Sensex, Nifty rebound over 1.5% despite late profit booking; global cues aid recovery

Benchmark indices staged a strong recovery on Wednesday, ending over 1.5% higher, even as late-session profit booking trimmed some gains, with easing global concerns and short-covering supporting the rally.

The S&P BSE Sensex rose 1,186.77 points, or 1.65%, to close at 73,134.32, while the NSE Nifty 50 gained 348 points, or 1.56%, to settle at 22,679.40.

Relief rally after sharp selloff

Markets rebounded after the previous session’s steep decline, with investors stepping in to buy beaten-down stocks amid signs of easing geopolitical tensions.

Global sentiment improved after indications that the US may look to de-escalate its stance in the ongoing West Asia conflict, providing relief to risk assets and helping stabilise crude oil prices.

Late profit booking caps gains

Indices, however, pared part of their intraday gains toward the close as traders booked profits at higher levels, reflecting continued caution in a volatile macro environment.

Market participants said uncertainty around geopolitical developments, along with concerns over crude prices and currency movement, continue to limit upside.

Broad-based buying across sectors

Buying was seen across sectors, with financials, autos and capital goods leading the recovery.

Among gainers, Trent , InterGlobe Aviation , Adani Ports and Special Economic Zone , Bharat Electronics , Adani Enterprises , State Bank of India , Eicher Motors , and Jio Financial Services were among the top performers on the Nifty.

On the downside, Dr. Reddy's Laboratories , HDFC Life Insurance , Cipla , Apollo Hospitals , Sun Pharmaceutical Industries , NTPC , and Power Grid Corporation of India ended lower.

Analysts said the rebound was largely technical in nature, driven by short-covering and value buying after recent declines.