Benchmark equity indices staged a strong rebound on Thursday, with the BSE Sensex jumping over 900 points and the Nifty 50 reclaiming the 24,750 mark, led by gains in heavyweight stocks such as Reliance Industries.
The Sensex ended the session 900 points higher, while the Nifty closed above 24,750, as investors stepped in to buy beaten-down stocks following the recent market correction.
Reliance Industries was among the top contributors to the rally, rising around 3 percent and lending strong support to the indices.
The rebound came despite persistent concerns over rising crude oil prices and geopolitical tensions in West Asia, which have recently unsettled global markets and weighed on investor sentiment.
Market participants said the sharp bounce was largely technical in nature after benchmark indices slipped into oversold territory in the past few sessions.
“Despite the surge in crude oil prices and persistent geopolitical tensions in West Asia, today’s market rebound appears largely driven by technical and derivative factors,” said Hitesh Tailor, Technical Research Analyst at Choice Broking.
According to him, the recent correction had pushed benchmark indices into deeply oversold levels, triggering a relief rally as traders moved to cover short positions.
Tailor noted that cooling volatility also supported the recovery, with the India VIX easing from elevated levels, suggesting that a significant portion of the geopolitical risk premium had already been priced in during the earlier decline.
From a derivatives perspective, the bounce was supported by short covering and improving options positioning. The Nifty Put–Call Ratio had fallen to relatively low levels, reflecting excessive pessimism among traders — a setup that often precedes a tactical pullback.
“As the index held above crucial support zones around 24,100–24,300, fresh put writing and unwinding of bearish positions emerged, indicating traders’ confidence that immediate downside may remain limited,” Tailor added.
Strong domestic institutional buying also helped stabilise the market, even as foreign institutional investors remained cautious amid global uncertainties.
However, analysts caution that elevated crude oil prices continue to pose a macro headwind for India. The current rise in equities is therefore seen more as a technical mean-reversion rally, supported by derivatives positioning and selective value buying after the recent decline.
Still, Thursday’s surge suggests that investors are willing to re-enter the market at lower levels, even as geopolitical developments and commodity price movements remain key risks to watch in the near term.
