The Indian equity benchmark indices, BSE Sensex and NSE Nifty, made a strong recovery on Thursday, as large buying was seen in metals, infrastructure, auto and energy stocks.
The BSE Sensex increased 899.71 points, or 1.14 per cent, to settle at 80,015.90. While the Nifty 50 advanced 285.40 points, or 1.17 per cent, to close at 24,765.90. Traders returned to the market with renewed confidence after multiple sessions of selling pressure due to ongoing crisis in West Asia and concerns about rising crude oil prices.
While talking to The Tribune, Saurabh Jain, co-founder & CEO, Stable Money, said today’s rebound likely reflected investors stepping in after the recent dip, supported by confidence that domestic fundamentals remained stable. After a brief correction, markets often saw renewed buying interest as investors look to accumulate quality stocks at more reasonable valuations.
“Markets may remain volatile in the near term due to global cues and geopolitical developments. In such phases, diversification becomes important. Alongside equities, allocating to stable fixed-income assets like fixed deposits and high-quality bonds can add predictability to portfolios, while gold mutual funds can help provide a hedge,” Jain said.
Dipesh Wadhel, founder, Nitinivesh, emphasised today’s rebound appearedlargely driven by value buying alongside an improvement in global sentiment. Markets had corrected earlier amid concerns over escalating tensions in West Asia.
“Historically, Indian equities have shown resilience during geopolitical events unless they disrupt oil supply chains or global trade routes. Crude oil prices remain the key variable to watch, given their influence on inflation expectations and overall market sentiment,” he said.
Amandeep Singh Uberoi, founder & CIO Creencia Consulting, feels today’s rebound appears largely driven by short covering and bargain buying after the recent decline, rather than a fundamental shift in the geopolitical backdrop. Markets are attempting to price in the Israel–Iran tensions while balancing them against resilient domestic liquidity and relatively stable macro fundamentals in India.
“In the near to medium term, volatility is likely to persist as global events evolve, making disciplined risk management and adaptive positioning more important than outright directional bias,” he added.
