Last Updated on October 15, 2026 11:37 pm by INDIAN AWAAZ

By Our Business Correspondent

Indian equity markets staged a powerful recovery on Thursday, with benchmark indices recording their strongest single-session gains in recent weeks as easing global bond yields, softer crude oil prices, strength in heavyweight banking stocks and renewed optimism in the technology sector triggered broad-based buying in frontline counters.

The rally came despite continued weakness across several global markets, particularly in Asian technology stocks, where concerns over artificial intelligence spending, semiconductor competition and elevated debt levels continued to weigh on investor sentiment. Investors instead chose to focus on improving macroeconomic indicators, expectations surrounding the second-quarter earnings season and positive developments in large-cap stocks.

The BSE Sensex surged 1,533.72 points, or 2.11%, to close at 74,315.61, while the NSE Nifty 50 advanced 374.65 points, or 1.66%, to settle at 22,997.35, after briefly crossing the psychologically important 23,000 level during intraday trade. The benchmark Nifty touched an intraday high of 23,056.40 before paring some gains.

The sharp rise marked a significant turnaround after recent volatility triggered by concerns about global inflation, technology sector weakness and geopolitical tensions.

Heavyweights Drive the Market Rally

The day’s gains were largely led by index heavyweights including ICICI Bank, Reliance Industries and HDFC Bank, which together contributed substantially to the benchmark surge.

ICICI Bank climbed nearly 4%, emerging as the biggest contributor to Nifty gains, while HDFC Bank rose over 2% amid expectations that upcoming quarterly results from major lenders will remain resilient despite a challenging interest-rate environment.

Reliance Industries also gained strongly after fresh developments related to the much-anticipated public offering of Jio Platforms improved investor confidence regarding value unlocking within the conglomerate.

Market participants said investors aggressively accumulated frontline stocks after signs emerged that global financial conditions may be improving, particularly with a retreat in U.S. Treasury yields and a weakening U.S. dollar.

Foreign Market Signals Improve

A key factor behind Thursday’s rally was a sharp decline in global bond yields.

The benchmark U.S. 10-year Treasury yield slipped to around 5.08%, easing concerns that borrowing costs would remain elevated for an extended period.

Simultaneously, the U.S. Dollar Index retreated below 103, improving sentiment toward emerging markets and supporting capital flows into risk assets.

Lower crude oil prices provided further relief. Brent crude futures dropped by more than 2%, easing concerns over imported inflation and reducing pressure on oil-importing economies such as India.

For domestic markets, falling oil prices are viewed positively because they improve fiscal balances, support the rupee and reduce cost pressures for several industries ranging from transportation to manufacturing.

Reflecting improved sentiment, the Indian rupee appreciated sharply against the U.S. dollar while domestic bond yields also edged lower.

IT Stocks Extend Powerful Recovery

One of the most notable market developments has been the strong comeback in information technology stocks.

After facing prolonged selling pressure earlier, the Nifty IT index has gained around 11% over the last five trading sessions, making it one of the best-performing sectoral indices.

The recovery was supported by short-covering as well as renewed buying after global investors reassessed the impact of recent concerns surrounding artificial intelligence-related investments and semiconductor industry competition.

Technology stocks worldwide have faced pressure amid fears that excessive AI-linked spending could lead to lower returns, while increased competition from Chinese semiconductor manufacturers has added fresh uncertainty.

However, Indian IT companies benefited from the view that they remain relatively insulated from the direct impact of global semiconductor pricing pressures, prompting investors to selectively accumulate large-cap technology counters.

Broader Market Tells a Different Story

Despite the sharp jump in benchmark indices, the broader market remained under pressure.

The BSE Midcap Index declined 0.48%, while the BSE Smallcap Index fell 1.04%, indicating that gains were concentrated in a handful of large-cap stocks rather than being broad-based.

Market breadth also reflected underlying weakness.

Out of the total traded stocks on the BSE, 2,668 shares declined compared with 1,720 advances, while 212 stocks remained unchanged.

Analysts noted that institutional investors largely preferred established blue-chip names ahead of the earnings season, while risk appetite toward smaller companies remained limited.

The divergence between benchmark indices and broader markets suggests investors continue to adopt a selective approach amid persistent global uncertainties.

Jio IPO Sparks Excitement

Among individual stocks, Reliance Industries gained 3.44% after its telecom and digital services arm, Jio Platforms, announced details of its proposed initial public offering (IPO).

The company fixed a price band of ₹1,065-₹1,119 per share for the issue.

Employees participating in the reserved category have been offered a discount of ₹54 per share.

The IPO consists of a fresh issue of up to 27 crore equity shares, making it one of the largest public offerings in recent Indian corporate history.

Market participants believe the listing could unlock significant value for Reliance shareholders and provide a clearer market valuation for the group’s digital ecosystem.

The announcement generated strong investor interest and contributed significantly to Reliance’s gains during the session.

Banking Stocks Gain Before Earnings

Financial stocks were another major source of strength.

Investors positioned themselves ahead of quarterly earnings from major private-sector lenders, expecting healthy loan growth and stable asset quality trends.

With bond yields easing and liquidity conditions improving, the outlook for banking profitability has strengthened.

Major lenders including ICICI Bank and HDFC Bank attracted substantial institutional buying, helping the Bank Nifty remain among the strongest sectoral performers of the day.

Analysts expect upcoming earnings from the banking sector to play a crucial role in determining market direction over the coming weeks.

Yes Bank Faces Sharp Sell-Off

In contrast to the optimism across banking majors, Yes Bank plunged 14.53%, making it one of the session’s biggest losers.

The decline followed reports related to the Supreme Court’s ruling concerning the lender’s Additional Tier-1 (AT-1) bonds.

According to reports, the court upheld an earlier Bombay High Court decision that overturned the bank’s write-off of AT-1 bonds worth approximately ₹8,415 crore during its 2020 reconstruction process.

The development has raised concerns about potential financial implications and liabilities that may arise from the long-running dispute.

Investors responded by aggressively reducing exposure to the stock.

Mixed Reaction to Corporate Earnings

The earnings season produced varied reactions across sectors.

Nestle India Falls Despite Strong Profit Growth

Nestle India reported robust quarterly numbers, with second-quarter consolidated net profit rising nearly 36% year-on-year to ₹1,009.61 crore.

Revenue increased more than 20% to ₹6,788.34 crore.

However, despite the strong performance, the stock fell 7.76%.

Market analysts attributed the decline to profit-booking and elevated investor expectations, which had already priced in much of the positive earnings outlook.

Tata Technologies Slips on Sequential Weakness

Tata Technologies recorded healthy year-on-year growth, with profit increasing 3.6% and revenue rising 28.4%.

However, investors focused on sequential weakness, with quarterly profit declining 5.2% compared with the previous quarter.

The stock closed marginally lower as investors scrutinized margin trends and future growth visibility.

Hathway Cable Under Pressure

Hathway Cable Datacom dropped more than 7% after reporting a sharp decline in profitability.

The company posted a 44.3% year-on-year fall in net profit despite achieving nearly 6% growth in revenue.

The results reinforced concerns regarding margin pressures in the cable and broadband industry.

Global Markets Remain Volatile

While Indian markets rallied sharply, global sentiment remained mixed.

European shares moved higher after economic data showed the UK economy expanded by 0.1% in August, contrary to expectations of a contraction. The data provided reassurance regarding economic resilience in Europe.

In the United States, futures pointed to a positive opening on Wall Street. However, investors remain concerned about persistent inflationary pressures.

Recent U.S. inflation data showed consumer prices rising faster than expected, strengthening speculation that interest rates could remain elevated for longer than previously anticipated.

Asian markets, meanwhile, experienced significant weakness.

South Korea’s Kospi index plunged more than 7%, while Japan’s Nikkei also recorded sharp losses as investors dumped semiconductor and technology stocks.

Major chipmakers including Samsung Electronics and SK Hynix witnessed heavy selling following concerns about slowing returns from AI investments and growing competition from Chinese memory-chip manufacturers.

The technology-driven weakness in Asia contrasted sharply with the strength seen in Indian frontline shares.

IPO Market Remains Active

The primary market also witnessed robust investor participation.

HD Fire Protect emerged as the standout performer, attracting subscriptions exceeding 131 times the shares offered, highlighting strong retail and institutional interest.

Tonbo Imaging India also witnessed healthy demand with subscription nearing four times the issue size.

However, investor response remained moderate for several other offerings including Zetwerk Manufacturing Business, Sahajanand Medical Technologies and Bonfiglioli Transmissions, which were yet to achieve full subscription levels by the end of the trading session.

Outlook

Market experts believe Thursday’s rally has improved near-term sentiment, but sustainability will depend on three key factors: corporate earnings, global interest-rate expectations and developments in international technology markets.

While declining bond yields, a softer dollar and lower crude prices have offered immediate relief, investors remain cautious about inflation risks, geopolitical tensions and ongoing volatility in global technology stocks.

The forthcoming earnings season, particularly results from major banks, technology firms and consumer companies, is expected to provide crucial direction for Indian equities.

For now, the sharp rebound in benchmark indices reflects renewed confidence in India’s large-cap corporate sector, even as broader market participation remains subdued and global uncertainties continue to linger.

Disclaimer: Stock market investments are subject to market risks. Please consult with a certified financial advisor before making any investment decisions.