The Nifty and Sensex surged despite regional risk aversion, but losses in mid- and small-cap shares and sharp declines in Yes Bank and IDBI Bank exposed a narrow recovery.
Indian equities staged a forceful rebound on Thursday, even as Asian markets slumped under renewed pressure from global risk aversion. The BSE Sensex climbed 1,533.72 points, or 2.11%, to 74,315.61, while the Nifty 50 rose 374.65 points, or 1.66%, to 22,997.35. The benchmark briefly moved above 23,000 during the session and finished back above its 20-day exponential moving average for the first time since August 14, a technical marker traders often watch for signs of short-term strength.
The move, however, was narrow beneath the surface. Large-cap shares led the advance, with gains in Tech Mahindra, ICICI Bank, Bharti Airtel, Reliance Industries and HCL Technologies helping lift the indices, while broader market gauges weakened. The Nifty Midcap 100 slipped 0.36% and the Smallcap 100 fell 1.31%, underscoring the uneven nature of the day’s trading. Sarvam Goel, founder of Pocketful, said the headline index gain masked softer market breadth, arguing that the session was more a rotation than a broad rally.
Banking and defensive names were among the biggest drags. Yes Bank fell 14.53% after the Supreme Court upheld a Bombay High Court ruling that cancelled the write-off of its ₹8,415 crore additional tier-1 bonds, raising the prospect of a fresh liability for the lender. IDBI Bank also slid more than 7% after the government approved the sale of its 60.72% stake to Fairfax Financial Holdings for ₹52,878 crore, or ₹81 a share, a level below the previous close. Canara Bank declined 6.12% as public sector lenders came under pressure, while Nestlé India dropped 7.76% after disappointing quarterly results.
Outside equities, the rupee extended its run of gains for a fifth straight session, strengthening 9 paise to close at 95.06 against the dollar, helped by Reserve Bank of India intervention and the unwinding of long dollar positions. Brent crude eased about 2.3% to near $103.6 a barrel, offering some relief to importers, while domestic bullion prices firmed, with MCX Gold and MCX Silver both higher. On the policy front, a Securities and Exchange Board of India advisory panel reportedly supported keeping the current 30-minute VWAP method for derivatives expiry settlement, leaving a proposed CAS-linked formula on hold.
Looking ahead, market participants are focused on the next resistance zone for the Nifty and on second-quarter earnings, which are likely to shape the near-term trend. Ajit Mishra of Religare Broking said geopolitical uncertainty and persistent foreign fund outflows remain key risks to a lasting recovery. Separately, India’s gross direct tax collections rose 14.9% from a year earlier to ₹16.03 lakh crore as of October 14, while Jio Platforms’ share sale, priced at ₹1,065 to ₹1,119 a share for a fresh issue of up to ₹30,213 crore, is scheduled to open on October 21.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
