The Indian benchmark indices snapped their longest losing streak in nearly 11 months on Thursday, ending seven consecutive sessions of decline. The broad-based rebound was driven by an unexpected global development: a US Treasury intervention that pulled long-term bond yields lower, weakened the dollar, and revived risk appetite across international markets.
The Nifty 50 closed at 24,231.85, up 153.55 points or 0.64 per cent, while the Sensex gained 628.04 points or 0.82 per cent to settle at 77,537.72. Trading on a weekly expiry day, intraday swings remained contained as the Nifty traded within an 81-point range between an intraday high of 24,265.15 and a low. Buying emerged around the psychologically significant 24,000 level, which aligns with the 61.8 per cent Fibonacci retracement of the previous upswing and an upward-sloping trendline connecting swing lows from April, June, and July.
Sectoral participation remained broadly positive. Nifty Media led the gains with a 2 per cent rise, followed by Realty at 1.4 per cent. Auto, FMCG, IT, Private Banks, Pharma, and Infrastructure advanced between 0.4 per cent and 0.8 per cent, while PSU Banks ended marginally negative to flat. Among Nifty 50 constituents, Eternal, Shriram Finance, and Kotak Mahindra Bank emerged as top gainers. Conversely, Tata Consumer, Hindalco, and IndiGo ended lower. Gold-loan lenders rose 3 to 4 per cent as bullion surged, and sugar stocks extended gains for a second straight session, rising up to 10 per cent on firm domestic prices and festive demand expectations.
The broader market participated in the recovery as well. The Nifty Midcap 100 gained 0.4 per cent and the Nifty Smallcap 100 advanced 0.7 per cent. Market breadth turned positive, with the advance-decline ratio improving to 1.30, and 301 stocks closing in positive territory within the Nifty 500 universe.
In currency markets, the Indian rupee snapped a three-day losing streak, gaining 5 paise to close at 95.70 against the dollar as the greenback slid to multi-month lows. Spot USDINR has immediate support at 95.55 and resistance at 96.10.
Bullion prices surged alongside global movements. MCX Gold gained around 2.3 per cent to ₹1,58,100, while COMEX Gold climbed from around $4,390 to $4,485, supported by the weaker dollar and lower US Treasury yields. However, Brent crude remained elevated near $94 per barrel, and WTI hovered around $86.6, as US-Iran tensions continued to pose inflation and current account risks.
During the session, the Reserve Bank of India released the minutes of its August Monetary Policy Committee meeting. While no rate action was announced, some research firms flagged the minutes as among the most hawkish in the past year, noting that several members left the door open to future tightening if inflation does not moderate. The central bank remains data-dependent ahead of its next meeting scheduled for October 5–7.
Market analysts recommend maintaining a cautious stance amid elevated crude prices and global uncertainties, advising participants to focus on selective, stock-specific opportunities and disciplined risk management. For the Nifty to build on Thursday's rebound, technical analysts note that the index must decisively clear the 24,300–24,375 resistance band, where the 50-day EMA is positioned, to negate the short-term downtrend.
"The recent rebound in the domestic indices offers a temporary relief after a sustained period of correction, largely aided by external liquidity factors and a weakening US dollar. However, entrepreneurs and business leaders must remain watchful of macroeconomic variables such as elevated crude oil prices and hawkish central bank commentary. Navigating the current business environment requires disciplined financial planning and a selective approach to capital allocation until broader macroeconomic stability is firmly established." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
