Three-Day Losing Streak Ends As Auto, Metal And Financial Stocks Trigger A Market Rebound
Markets Snap 3-Day Losing Streak as Auto, Metal and Financials Lead a Broad Rebound
| Index | Price | Change | % Chg |
| Nifty 50 | 25,898.55 | 140.55 | +0.55% |
| Nifty Bank | 59,209.85 | 249.45 | +0.42% |
| Nifty Financial | 27,561.90 | 157.60 | +0.58% |
| BSE SENSEX | 84,818.13 | 426.86 | +0.51% |
The Indian equity markets staged a strong comeback on Thursday, ending a three-day losing streak as global sentiment improved following the US Federal Reserve’s 25-basis-point rate cut. The upbeat mood helped the Nifty 50 close at 25,898.55, up 0.55%, while the Sensex reclaimed 84,818.13, rising 0.51%. The recovery came despite renewed pressure on the rupee, which weakened to a fresh all-time low of 90.33 against the US dollar amid uncertainty over the India-US trade deal.
The session, marked by weekly derivatives expiry, opened firm before slipping briefly into the red. A wave of value buying in the second half boosted broader sentiment, allowing the indices to end near day’s highs. Auto, metal, pharma, realty, banking and IT stocks were the major contributors to Thursday’s rebound.
Also Read : SIP Inflows Hold Strong At Rs. 29,445 Crore In November Even As Stoppage Ratio Remains High
The Nifty 50, which started in the green, held its gains throughout the day and closed above 25,800, signalling renewed investor appetite after recent declines. The Bank Nifty, however, opened in the green but closed 0.42% lower at 59,209.85, reflecting intraday volatility and stock-specific pressure.
The BSE Sensex rose 426.86 points, hitting an intraday high of 84,906.93 before settling at 84,818.13. Earlier, both indices had sharply corrected—Nifty touched 25,707.10 and Sensex fell to 84,168.88—before bouncing back strongly.
Midcap and smallcap indices also joined the rally, with the BSE Midcap index gaining 0.8% and Smallcap rising 0.5%, indicating broader market recovery.
The market’s rebound was strongly supported by broad-based sectoral strength, with auto, metal, pharma and IT stocks leading the uptrend. Investors returned to these sectors after recent declines, driving a healthy recovery across the board. Auto firms benefited from improving demand expectations, while metal stocks gained on firmer global prices and a softer US dollar. Pharma shares saw steady buying interest amid defensive sentiment, and IT stocks edged higher as the Fed’s rate cut boosted hopes of stronger tech spending. Together, these sectors helped lift overall market sentiment, signalling renewed confidence after a volatile week.
All major sectoral indices ended higher, with auto (+1.11%), metal (+1.06%), pharma (+0.98%), consumer durables (+0.97%) and IT (+0.81%) leading the uptrend. PSU banks, private banks, telecom and realty also gained between 0.5–1%.
The only laggards were media (-0.09%) and oil & gas (-0.03%), which saw marginal declines.
Among Nifty50 constituents, the top gainers were:
Adani Enterprises (+2.65%)
Jio Financial (+2.63%)
Tata Steel (+2.57%)
Eternal (+2.38%)
Kotak Mahindra Bank (+2.06%)
Top losers included:
Asian Paints (-1.00%)
SBI Life (-0.86%)
Bharti Airtel (-0.63%)
Power Grid (-0.28%)
ONGC (-0.22%)
Multiple stocks saw sharp moves driven by corporate updates:
Shakti Pumps surged 12% after bagging a ₹407.5-crore order.
Aurionpro Solutions jumped 8% after unveiling AurionAI.
DCM Shriram rose 4% after signing an MoU with Bayer Crop Science.
Tejas Networks gained 1.3% on securing an order for IP routing products.
Cipla added 1.5% after launching a new diabetes drug.
Kaynes Technology gained 4% after Nomura reiterated a BUY rating and set a target of ₹5,455.
Hindustan Zinc rose 2% as silver prices hit fresh highs post Fed rate cut.
Hubtown, however, slipped 9% after withdrawing its proposed preferential issue.
The US Federal Reserve’s decision to cut rates by 25 basis points boosted global markets, with easing US yields signalling potential improvement in foreign inflows into emerging markets. Domestic equities reacted positively, particularly IT stocks, as a softer rate environment typically boosts global tech spending.
The Fed’s move also supported commodity markets, helping metal stocks rally in India. Yet, higher Japanese yields and concerns around AI-driven valuations kept investors selective.
Despite the equity market’s strong rebound, the rupee continued its downward slide, closing at a fresh record low, underscoring the persistent pressure on India’s currency markets. Even as stocks surged on the back of upbeat global cues and value buying, the rupee weakened to 90.33 against the US dollar, reflecting concerns over the delayed India–US trade deal, uneven foreign inflows, and sustained demand for the greenback. The sharp depreciation highlighted a growing divergence between equity optimism and currency stress, reminding investors that macroeconomic uncertainties—especially on the external front—remain a key risk in the near term.
Absence of progress on the India-US trade deal,
Weakening foreign inflows,
Higher demand for the US dollar in global markets.
The currency pressure prevented a stronger rally in equities and drew investor attention to macro risks.
The easing of the India VIX added a layer of comfort to Thursday’s market rebound, signalling reduced short-term uncertainty after days of heightened volatility. The volatility index slipped sharply, reflecting calmer investor sentiment and smoother trading conditions. Market breadth also improved noticeably, with a larger number of stocks advancing than declining, indicating broader participation in the recovery. This combination of a softer VIX and positive breadth suggested that buying interest was not limited to a few heavyweight counters but spread across midcaps and smallcaps as well—an encouraging sign for the strength and sustainability of the market’s bounce-back.
The volatility index India VIX declined 4.69%, settling at 10.40, pointing to reduced near-term market uncertainty. Market breadth improved as 1,869 stocks advanced, 1,575 declined, and 158 remained unchanged.
Daily action metrics:
52-week highs: 28
52-week lows: 105
High band hitters: 63
Low band hitters: 48
1. Value Buying Emerges After Selloff
Value buying returned strongly after three days of decline, as investors accumulated quality stocks across IT, auto, metal, realty and banking sectors. The move was supported by firmer global metal prices, which lifted metal stocks by up to 1%, while IT counters gained as optimism around the US Fed’s rate cut boosted expectations of improved global tech spending.
2. Renewed Trade Deal Optimism
Market sentiment received an additional boost from optimism surrounding the India–US trade negotiations. Chief Economic Advisor V. Anantha Nageswaran said most trade issues have been “sorted out,” expressing confidence that a final agreement could be reached by March 2026. A positive signal also came from the US Trade Representative, who acknowledged India’s strengthened commitments in the ongoing talks.
3. US Fed Rate Cut
The US Federal Reserve’s widely expected 25-basis-point rate cut lifted liquidity sentiment globally. Lower US rates typically encourage flows into emerging markets like India, helping domestic equities find support. This policy move improved investor appetite, particularly in rate-sensitive and export-focused sectors.
4. Lower Volatility
A noticeable decline in the India VIX contributed to a calmer trading environment. The easing of volatility helped stabilize market conditions after recent turbulence, reducing sharp intraday swings and giving investors the confidence to re-enter equities with a more constructive near-term outlook.
5. Strong Global Cues
Positive global cues further buoyed domestic sentiment. US equities closed higher following the Fed decision, setting a constructive tone for Asian markets. The upbeat global backdrop encouraged buying across key sectors and reinforced the day’s upward momentum.
6. Weekly Expiry Volatility
Thursday’s trading session also coincided with the weekly derivatives expiry, adding to intraday fluctuations as traders unwound or rolled over positions. Despite the volatility, strong late-session buying pushed markets decisively into positive territory, helping Nifty and Sensex close near their respective day’s highs.
The Nifty Bank index snapped its three-session losing streak, ending 0.4% higher.
Kotak Mahindra Bank led gains at +2% (₹2,173.30)
HDFC Bank (+1.02%), Canara Bank (+0.85%), PNB, SBI, and IndusInd also edged higher.
According to Sudeep Shah of SBI Securities, the index remains constrained around its 20-day EMA.
Key levels:
Support: 58,900–58,800
Resistance: 59,400–59,500
Shah said banking and IT will dictate the next leg of market direction.
Nifty remained firm despite early decline but faces strong resistance at the 21-EMA.
Key levels:
Support: 25,700
Break below: Bears may regain control
Upside hurdle: 26,000
A sustained move above the 20-DEMA (25,950) is needed to confirm a stronger recovery.
Stoxx Europe 600: Flat
S&P 500 futures: -0.6%
Nasdaq 100 futures: -0.8%
Dow Jones futures: -0.3%
MSCI Asia Pacific: -0.6%
MSCI Emerging Markets: -0.5%
Bandhan Bank
Sammaan Capital
Kaynes, Adani Enterprises, HFCL, CONCOR, IRCTC, RBL Bank, IndiGo, HUDCO, Angel One, Idea, Dixon, LICHSGFIN, SAIL, PNB, Crompton, Inox Wind, Biocon, PGEL, Amber, IEX, DLF, JSW Energy, CDSL, Titagarh, MCX, ABCAPITAL, Tata Elxsi, NBCC, NMDC, BDL, IREDA, RECLTD, RVNL, National Aluminium, Kalyan Jewellers, Patanjali, Mazdock, Manappuram, Petronet LNG, Tata Tech, BHEL, HAL.
None reported.
Thursday’s rebound was broad and encouraging, supported by global cues and strong sectoral participation. However, technical indicators suggest caution until Nifty crosses 26,000 decisively. The rupee’s continued weakness, trade-deal uncertainties, and global volatility remain key risks for near-term market direction.
The Indian stock market rebounded as investors engaged in value buying across major sectors like auto, metals, pharma and IT, helped by supportive global cues after the US Federal Reserve announced a 25-basis-point rate cut. Although global uncertainties persisted—including the weakening rupee and ongoing India–US trade negotiations—improved liquidity sentiment, lower volatility levels and strong domestic inflows collectively boosted market confidence.
The Fed’s rate cut improved global risk appetite and reduced US bond yields, making emerging markets like India more attractive for foreign inflows. This shift supported a broad-based up-move in Nifty and Sensex, particularly benefiting interest-rate-sensitive sectors such as IT, financials and consumer durables. The rate cut also encouraged hopes of increased tech spending globally, lifting sentiment in India’s IT sector.
These sectors outperformed due to a combination of strong global cues, positive demand expectations and favorable macroeconomic triggers. Auto and consumer sectors benefited from rising domestic demand forecasts, metal stocks gained from firmer global commodity prices and a weaker US dollar, while pharma and IT gained traction as investors rotated into defensives and export-oriented plays following the Fed policy shift.
A fall in India VIX typically signals a decline in expected short-term volatility, reflecting improved market stability. The latest drop indicated that traders expect calmer market conditions ahead, contributing to renewed buying interest after a period of heightened uncertainty. Lower volatility often encourages institutional and retail investors to re-enter the market with renewed confidence.
The rupee’s decline to an all-time low added a layer of caution to an otherwise positive market session. A weaker rupee increases import costs, pressures inflation and reduces foreign investors’ dollar-adjusted returns. While equity indices rallied due to global and domestic triggers, the sharp depreciation of the currency acted as a limiting factor, preventing a more aggressive upside move.
For Nifty, 26,000 remains the crucial resistance, while 25,700 acts as a key support. A sustained break above 26,000 may signal the continuation of the uptrend, whereas a fall below 25,700 could open the door to renewed selling pressure. For Bank Nifty, the 58,900–58,800 zone serves as strong support, while 59,400–59,500 remains the immediate hurdle to watch. These levels are critical for short-term traders assessing momentum and trend reversal signals.
Shakti Pumps surged on a major order win of ₹407.5 crore, signaling strong business momentum. Aurionpro jumped after unveiling its new AI platform, AurionAI, driving investor interest in tech-related themes. Cipla gained after launching a new diabetes treatment, strengthening its pharma growth outlook. DCM Shriram rose after signing an MoU with Bayer Crop Science, indicating strategic expansion in agritech partnerships. These stock-specific fundamentals helped them outperform the broader market.
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