By Our Business Correspondent
Indian equity markets staged a powerful recovery on Thursday, breaking a prolonged losing streak and restoring investor confidence amid easing global bond market pressures. The Nifty 50 index reclaimed the psychologically important 24,200 mark after seven consecutive sessions of decline, while the Sensex surged more than 600 points, supported by broad-based buying across sectors.
The rebound was triggered by a significant development in the United States, where the Treasury announced plans to double its buybacks of longer-duration government debt. This move helped stabilize global bond markets, ease pressure on yields, and improve risk appetite across emerging markets. The easing of U.S. Treasury yields provided relief to investors who had been grappling with volatility in recent weeks, particularly after the 30-year U.S. yield had touched its highest level since 2007.
Back home, the rally was led by information technology, financials, realty, and media stocks, while the broader market also ended higher. The rupee snapped its three-day losing streak, closing at 95.71 per dollar, reflecting improved sentiment in the currency market. Technically, analysts noted that the Nifty now faces an immediate hurdle at 24,290–24,320, while 24,130–24,100 remains a crucial support zone.
Market Performance
The S&P BSE Sensex surged 628.04 points, or 0.82%, to close at 77,537.72. The Nifty 50 index gained 153.55 points, or 0.64%, to settle at 24,231.85. This rebound came after a period of sustained weakness: over the past four consecutive trading sessions, the Sensex had declined 1.49%, while the Nifty had fallen 2.05% across seven sessions.
Among the key contributors to Thursday’s rally were Bharti Airtel (up 1.02%), ICICI Bank (up 0.71%), and HDFC Bank (up 0.70%), which provided significant support to the Nifty.
However, the broader market underperformed the frontline indices. The BSE 150 MidCap Index fell 0.53%, while the BSE 250 SmallCap Index dropped 0.48%. Despite this divergence, overall market breadth remained positive, with 2,450 shares advancing against 1,874 declines on the BSE. A total of 237 shares remained unchanged, underscoring the mixed but improving sentiment.
Commodities, Currency, and Bond Markets
In the commodities market, Brent crude (October 2026 settlement) gained $2.40, or 2.62%, to $94.02 per barrel. Oil prices remained firm as uncertainty over the U.S.–Iran conflict and disruptions to shipping through the Persian Gulf continued to raise concerns over energy supplies and inflation.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee hovered at 95.7150 compared with its previous close of 95.7350.
Bond yields also reflected the shifting sentiment. The yield on India’s 10-year benchmark government paper rose 0.73% to 6.862%, compared with 6.812 in the previous session.
Precious metals saw modest gains. MCX Gold futures (5 October 2026 settlement) rose 0.10% to ₹1,58,151.
Globally, the U.S. Dollar Index (DXY) fell 0.21% to 98.63, while the U.S. 10-year bond yield advanced 0.32% to 4.668.
Global Market Overview
European equities traded lower on Thursday, as renewed concerns over inflation, elevated oil prices, and a hawkish Federal Reserve outlook offset relief from the recovery in global bond markets.
Asian equities ended higher, tracking Wall Street’s rebound in the previous session. The U.S. Treasury’s announcement of expanded buyback operations for longer-dated debt eased pressure on the bond market, pushing the 30-year yield lower after it had climbed to 5.337%, its highest level in nearly two decades.
On Wall Street, the S&P 500 snapped a three-session losing streak on Wednesday, while the Dow Jones Industrial Average and Nasdaq Composite gained around 0.2%, supported by falling longer-dated Treasury yields.
Nevertheless, sentiment remained cautious. Minutes of the Federal Reserve’s July meeting revealed that many policymakers were open to further rate hikes if inflation remains elevated. The Fed had kept its policy rate unchanged at 3.50%–3.75%. Investors are now focused on U.S. weekly jobless claims for fresh clues on labour-market conditions and the outlook for monetary policy.
Sectoral Highlights and Stocks in Focus
Sugar Stocks Rally
Sugar stocks witnessed a sharp rally after the government tightened stockholding limits for bulk sugar consumers ahead of the festive season. The directive requires bulk consumers using more than 10 metric tonnes of sugar per month to limit inventories to 15 days between September 1 and November 30, 2026.
This measure impacted confectionery makers, beverage companies, food processors, and other institutional buyers. As a result, sugar stocks surged:
- Balrampur Chini Mills rose 19.55%
- Bannari Amman Sugars gained 17.23%
- Bajaj Hindusthan Sugar advanced 14.47%
- Uttam Sugar climbed 11.70%
- Avadh Sugar rose 9.52%
- Shree Renuka gained 7.80%
- Dhampur Sugar advanced 7.71%
- Dalmia Sugar rose 6.84%
- Triveni Engineering gained 3.74%
- EID Parry advanced 2.95%
Corporate Developments
- Hyundai Motor India added 2.41% after announcing a price hike of up to 1% across its vehicle portfolio, effective September 2026.
- Lupin shed 1.06% after its subsidiary VISUfarma B.V. entered into an exclusive licensing agreement with U.S.-based Visus Therapeutics Inc. for commercializing ‘YUVEZZI’ in Europe.
- Lohia Corp fell 3.79% despite reporting a 292% rise in consolidated net profit to ₹66.3 crore in Q1 FY27, with revenue up 60% YoY to ₹503 crore.
- EMS advanced 1.87% after securing L-1 bidder status for a ₹222.45 crore water treatment project in Udaipur, Rajasthan.
- Aditya Infotech hit a 5% upper circuit after its board approved raising up to ₹1,500 crore via equity issuance.
- Aditya Birla Capital (ABCL) rallied 3.28% after announcing entry into the gold loan business.
- Unicommerce eSolutions added 2.21% after partnering with Urban Company’s Middle East arm for e-commerce operations in the UAE and Saudi Arabia.
- Glenmark Pharmaceuticals rallied 3.85% after receiving USFDA approval for Fluticasone Propionate Nasal Spray USP.
- United Spirits added 1.31% after FSSAI revoked its June 29 order concerning a product manufactured at its Baramati unit.
- Strides Pharma Sciences rallied 3.92% after receiving an Establishment Inspection Report (EIR) from the USFDA, closing inspection at its Bengaluru facility.
IPO Market Update
The primary market remained active with several IPOs attracting strong investor interest:
- Tempsens Instruments (India): Subscribed 5.69 times, with bids for 8.64 crore shares against 1.51 crore shares on offer. Price band: ₹285–₹300.
- Gaja Alternative Asset Management: Subscribed 2.36 times, with bids for 5.97 crore shares against 2.53 crore shares on offer. Price band: ₹152–₹160.
- Sunshine Pictures: Subscribed 105.34 times, with bids for 57.78 crore shares against 54.86 lakh shares on offer. Price band: ₹342–₹360.
- Shankesh Jewellers: Subscribed 2.77 times, with bids for 7.65 crore shares against 2.76 crore shares on offer. Price band: ₹88–₹93.
Outlook
Thursday’s rebound marked a significant shift in sentiment after a prolonged period of weakness. The easing of U.S. Treasury yields and stabilization in global bond markets provided the immediate trigger, while domestic factors such as government policy measures and corporate earnings supported the rally.
Analysts caution, however, that volatility may persist given geopolitical uncertainties, elevated crude prices, and the possibility of further monetary tightening by the Federal Reserve. For Indian markets, the Nifty’s ability to sustain above the 24,200 level and break past resistance at 24,320 will be crucial in determining near-term momentum.
With festive season demand expected to boost consumption-related sectors and IPO activity remaining buoyant, investors are likely to see stock-specific opportunities even as broader market risks remain
Disclaimer: Stock market investments are subject to market risks. Please consult with a certified financial advisor before making any investment decisions.