This recovery came after a sharp sell-off in the previous session, with benchmark indices indicating gains in the pre-open session. Investors are attempting a cautious recovery even as global risk sentiment remains fragile due to escalating tensions in West Asia and volatile crude oil prices.
At around 9:07 AM in the pre-open session on Thursday, the Sensex was trading at 79,530, up 414 points, while the Nifty50 stood at 24,616, higher by 135 points, signalling a likely positive start to the trading day.
On the 30-share Sensex, Reliance, Adani Ports, NTPC, BEL, and Tata Steel emerged among the gainers. Meanwhile, the laggards included ICICI Bank, Asian Paints, HUL, HCL Tech, and ITC.
In the broader markets, the Nifty Smallcap50 rose 1.13 per cent. Sectorally, the Realty and Oil & Gas indices led across the board with gains of 1.76 per cent and 1.37 per cent respectively.
The tentative rebound comes after domestic equities witnessed steep declines on Wednesday, when geopolitical tensions and surging oil prices triggered broad-based selling across sectors.
Geopolitical Tensions And Oil Prices Remain Key Risks
Market sentiment remained guarded after domestic equities ended the previous session in the red, weighed down by concerns over the escalating conflict in West Asia.
Crude oil prices continued to rise amid fears of supply disruptions. WTI crude oil April futures climbed 3.36 per cent intraday, extending gains for a third consecutive session. The rally comes amid concerns that exports from Iraq and Kuwait could face disruptions if the Strait of Hormuz remains shut.
Rupee Recovers After Sharp Fall
The Indian rupee had weakened sharply in the previous session, dropping 69 paise to hit 92.18 against the US dollar. However, the currency later recovered to 91.66, supported by movements in crude oil prices and market adjustments.
Global Cues Support Market Sentiment
Asian markets traded higher in early deals, providing supportive cues for domestic equities. China’s Shanghai Composite gained 0.84 per cent and Shenzhen rose 1.67 per cent. Japan’s Nikkei advanced 1.84 per cent, while Hong Kong’s Hang Seng added 1.13 per cent. South Korea’s Kospi surged 9.69 per cent.
Overnight, US markets also closed firmly higher. The Nasdaq rose 1.29 per cent, the S&P 500 gained 0.78 per cent, and the Dow Jones Industrial Average advanced 0.49 per cent.
Institutional Flows Remain In Focus
Foreign institutional investors (FIIs) continued to pare holdings, selling equities worth Rs 8,752 crore on March 4. Domestic institutional investors (DIIs), however, remained supportive, purchasing shares worth Rs 12,068 crore, according to exchange data.
Wednesday’s Sharp Sell-Off Drags Benchmarks Lower
Benchmark indices Sensex and Nifty ended more than 1 per cent lower on Wednesday, tracking weakness across Asian markets as the conflict in West Asia intensified and pushed crude oil prices higher.
The 30-share BSE Sensex plunged 1,122.66 points, or 1.40 per cent, to close at 79,116.19. During the session, the index had dropped as much as 1,795.65 points, or 2.23 per cent, touching an intraday low of 78,443.20 before trimming some losses in the latter half of trade.
The NSE Nifty declined 385.20 points, or 1.55 per cent, to settle at 24,480.50. The index also slipped to an intraday low of 24,305.40, down 560.30 points or 2.25 per cent, marking its lowest closing level in six months and extending its losing streak to three consecutive sessions.