Mumbai: Indian stock markets, including the Sensex and Nifty, staged a moderate rebound today, recovering from a previous session's sharp decline, driven by foreign fund inflows and positive global cues despite lingering geopolitical concerns.
The BSE Sensex climbed 238.22 points (0.31%) to 76,741.82, while the NSE Nifty rose 80.75 points (0.34%) to 23,962.80.
The rebound was supported by foreign institutional investor (FII) inflows, with FIIs buying equities worth Rs 1,962.80 crore on Wednesday.
Mid and small-cap stocks, particularly realty and PSU banks, led the recovery after recent corrections.
Investor sentiment remained cautious due to ongoing geopolitical tensions between the United States and Iran, which had triggered the previous day's sell-off.
Global markets showed a mixed trend, with most Asian markets rebounding, while US markets ended mostly lower on Wednesday.
Market benchmark indices Sensex and Nifty rebounded on Thursday after a heavy correction in the previous session amid foreign fund inflows and a largely positive trend in global markets.
However, caution prevailed in the market as the United States and Iran exchanged strikes for a second consecutive day, an expert said.
The 30-share BSE Sensex climbed 238.22 points, or 0.31 per cent, to settle at 76,741.82. During the day, it jumped 823.05 points, or 1.07 per cent, to 77,326.65.
The 50-share NSE Nifty went up by 80.75 points, or 0.34 per cent, to end at 23,962.80.
From the Sensex pack, Sun Pharma, Bharti Airtel, Bajaj Finserv, InterGlobe Aviation, Eternal and Kotak Mahindra Bank were among the major winners.
Infosys, Maruti, NTPC and Axis Bank were among the laggards.
Factors Influencing the Rebound Foreign Institutional Investors (FIIs) bought equities worth Rs 1,962.80 crore on Wednesday, according to exchange data.
Brent crude, the global oil benchmark, traded marginally higher by 0.15 per cent to USD 78.14 per barrel.
"Indian equity markets staged a moderate rebound, aided by supportive global cues, though investors remained watchful of the geopolitical developments that had triggered the last trading day's sell-off," Vinod Nair, Head of Research, Geojit Investments Limited, said.
The recovery was led by mid and smallcap stocks, with realty and PSU banks bouncing back strongly after their recent correction, he added.
Previous Session's Drubbing and Global Context : On Wednesday, the Sensex tanked 1,677.12 points, or 2.15 per cent, to settle at 76,503.60. On similar lines, the Nifty tumbled 516.65 points, or 2.12 per cent, to end at 23,882.05.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite index rebounded and settled in the green, while Hong Kong's Hang Seng index ended lower.
"Indian equity markets staged a partial rebound on bargain buying after the previous session's sharp West Asia-driven sell-off.
"However, investor sentiment remained cautious as the United States and Iran exchanged strikes for a second consecutive day, casting doubt over the prospects for diplomatic talks and keeping risk appetite subdued," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
