Indian Stock Market Recovers from Early Plunge; Sensex Gains 185 Points
Sensex rebounds 1,800 pts from day’s low, settles in green; Nifty above 22,700 as rupee strengthens
The Economic Times
Image: The Economic Times
On Thursday, Indian stock markets rebounded sharply after an early plunge, with the Sensex closing up 185 points at 73,319.55 and the Nifty rising 34 points to 22,713. The recovery followed a significant selloff triggered by geopolitical concerns, while the Indian rupee recorded its largest single-day gain in over a decade.
- 01Sensex rebounded 1,800 points from its intraday low.
- 02Nifty IT sector emerged as the top gainer, rising nearly 3%.
- 03The Indian rupee strengthened by 1.8%, closing at 93.10 against the US dollar.
- 04Total market capitalisation saw a loss of nearly ₹11 lakh crore during the selloff.
- 05Broader markets underperformed, with Nifty Midcap 100 and Nifty Smallcap 100 indices declining.
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Indian stock markets experienced significant volatility on Thursday, initially plunging due to geopolitical tensions but later recovering to close higher. The Sensex ended up 185 points at 73,319.55, while the Nifty gained 34 points to reach 22,713. Earlier in the day, comments from former US President Donald Trump regarding potential escalations in Iran led to a sharp selloff, causing the Sensex to drop nearly 1,600 points to a low of 71,546. This selloff wiped off approximately ₹11 lakh crore from the total market capitalisation of companies listed on the Bombay Stock Exchange (BSE). However, a surge in buying interest in the afternoon helped recover losses. IT stocks, including HCL Tech, Tech Mahindra, Infosys, and TCS, were among the top gainers, contributing to the market's recovery. The Indian rupee also saw a significant rise, closing 1.8% higher at 93.10 against the US dollar, following measures by the Reserve Bank of India (RBI) to stabilize the currency. The RBI's decision to restrict offshore derivatives trading has been described as one of the toughest measures in over a decade, impacting a market worth $149 billion daily.
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The recovery in the stock market may boost investor confidence and stabilize the financial environment, potentially benefiting individual investors and businesses reliant on market performance.
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