Indian equity markets staged a sharp recovery on Thursday as the Sensex and Nifty rebounded from early losses, ending higher after four consecutive sessions of weakness. The market opened on a cautious note but quickly found strength, supported by value buying, positive global cues, and strong momentum in IT stocks.

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Markets Recover After Four Days of Pressure Key Drivers Behind Today’s Market Rebound Technical View: Nifty Faces Resistance Near 26,000

The day began on the back foot. The Sensex slipped 156.83 points to 84,949.98 at the opening bell, reflecting lingering pressure from the previous four days. The Nifty also fell 47 points to 25,938.95, extending the weak sentiment.

However, this cautious start did not last long. As the session progressed, buying interest picked up across sectors, helping the benchmark indices reverse their early decline. By mid-session, the Sensex climbed 146.52 points to 85,244.78, while the Nifty rose 36.70 points to 26,024.80, marking a sharp turnaround from the day’s lows.

Investors, who had remained cautious during the recent correction, showed renewed confidence, leading to a recovery powered by a mix of global stability and sector-specific strength — especially in IT.

Markets Recover After Four Days of Pressure

The rebound comes after the markets faced persistent pressure over the last four sessions. The decline had kept investors on edge, as concerns around global trends and foreign fund flows weighed on sentiment.

Thursday’s recovery offered much-needed respite, with traders actively accumulating stocks at attractive valuations. The across-the-board buying signalled a returning appetite for risk, especially in beaten-down pockets of the market.

Also Read: Citi Sees Up to 17% Upside for Reliance Industries Stock as Brokerage Turns More Bullish on Jio and Consumer Business

Key Drivers Behind Today’s Market Rebound

1. Positive Global Cues Boost Investor Confidence

Global sentiment played a crucial role in lifting the mood on Dalal Street.

Asian markets were mixed, but overall trends leaned supportive:

South Korea’s Kospi traded lower
Japan’s Nikkei 225 moved higher
Hong Kong’s Hang Seng also gained

In the US, major indices closed in the green overnight, helping reduce pressure on domestic equities. These positive global cues offered a stabilizing backdrop, limiting downside risks for Indian markets.

As global markets avoided major volatility, domestic traders found enough confidence to pick up positions, especially after several days of decline.

2. Value Buying After Recent Correction

After four straight sessions of losses, valuations turned increasingly attractive. This prompted investors — including short-term traders — to step in and accumulate stocks available at lower levels.

Value buying was particularly visible in:

IT stocks
Metal stocks
Auto shares

These sectors contributed strongly to the broader market’s upward movement. The buying was not restricted to large-caps alone; broader indices also showed signs of rejuvenation as bargain hunters returned to the market.

The shift in sentiment highlighted how quickly markets can turn once investors sense buying opportunities after corrections.

3. IT Stocks Outperform as Rupee Hits All-Time Low

One of the biggest triggers for today’s rebound was the sharp rally in IT stocks. The Nifty IT index outperformed the broader market, driven by currency movements that favoured export-focused companies.

The rupee fell 28 paise to an all-time low of 90.43 per US dollar in early trade. This decline was attributed to sustained foreign fund outflows, which continued putting pressure on the currency.

For IT exporters, a weaker rupee directly boosts revenue earned in dollars. The sharp currency depreciation lifted sentiment across the sector, pulling in strong buying interest and supporting the overall market recovery.

Technical View: Nifty Faces Resistance Near 26,000

Market experts noted that while the recovery was encouraging, the Nifty faced hurdles around a key psychological level.

Anand James, Chief Market Strategist at Geojit Financial Services, said the Nifty’s recovery seemed to pause near the 26,000 mark. According to him, the index may need a phase of consolidation before moving decisively higher.

He identified two possible scenarios:

Upside Levels to Watch

A move towards 26,111
A breakout above 26,200, which could open the door for further strength

Downside Risk

A fall below 25,935 would indicate a resumption of the downtrend, suggesting weakness could return if the support level is breached.

His comments reflect the cautious optimism prevailing in the market — strength is visible, but the index still needs confirmation to sustain the upward trend.

Disclaimer

The views and investment tips expressed by experts are their own and not those of the website or its management. Readers are advised to consult certified professionals before making any investment decisions.

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