Hyderabad, August 28: Sensex gained nearly 400 points on Friday as Indian equity markets rebounded after two consecutive sessions of losses. Strong buying in IT stocks and positive global cues supported the market recovery.
At around 10:30 am, the Sensex was up 347.56 points, or 0.45%, at 77,281.16. The Nifty 50 rose 75.05 points, or 0.31%, to 24,165.90.
The rebound came after the benchmark indices had declined sharply over the previous two sessions. Investors also found support from softer crude prices and lower market volatility.
Sensex Gains 400 Points as IT Stocks Lead Market Rebound
IT stocks emerged as the biggest drivers of the market rally. The Nifty IT index climbed around 3%, with all its 10 constituents trading higher.
Shares of TCS, Infosys and HCL Technologies gained between 2% and 4%. The rally followed strong gains in Nvidia shares after the US chipmaker reported upbeat results and provided a positive outlook.
Market analysts said the developments revived optimism around artificial intelligence and semiconductor-related investments. The positive sentiment also lifted technology stocks across global markets.
Crude Prices and Global Cues Support Indian Stocks
Declining crude prices provided another boost to Indian equities. Brent crude was trading 0.56% lower at around $89.20 a barrel.
The decline came amid renewed diplomatic efforts to restore normal traffic through the Strait of Hormuz. Any improvement in the situation could ease concerns over energy supplies and inflation.
Asian markets were also trading higher on Friday. Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng were in positive territory.
US markets also ended higher on Thursday. The Dow Jones Industrial Average gained 0.20%, while the S&P 500 rose 0.72%. The Nasdaq advanced 1.57%.
Value Buying Helps Sensex and Nifty Recover
Investors also turned to value buying after the recent market correction. The Sensex had fallen 539.35 points in the previous session, while the Nifty declined 116.90 points.
The two benchmark indices had lost around 1% each over the previous two sessions. The decline prompted some investors to accumulate stocks at lower levels.
The India VIX, a measure of expected market volatility, also fell nearly 2% to 10.97. Lower volatility generally supports investor confidence and reduces concerns about sharp market swings.
Ather Energy, Tejas Networks Among Key Movers
Among individual stocks, Ather Energy gained around 4.5% after Hero MotoCorp increased its stake in the electric two-wheeler company to 32.8%.
Tejas Networks climbed nearly 9% after securing an order from Tata Consultancy Services.
Market participants are also watching developments at the US Federal Reserve’s Jackson Hole symposium. Federal Reserve Chair Kevin Warsh’s comments on inflation and interest rates could influence global market sentiment.
Nifty Technical Levels to Watch
According to market analysts, the 24,060 level remains an important support zone for the Nifty. A sustained move above 24,150 and 24,215 could signal further strength.
However, failure to hold 24,060 could expose the index to further selling pressure, with 23,575 emerging as a possible downside level.
For now, strong IT buying, softer crude prices and supportive global markets are helping Sensex and Nifty recover from their recent losses. Investors, however, remain cautious ahead of key global economic signals and further developments in interest rate expectations.
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