Markets bounce back: Sensex gains 185, Nifty tops 22,700 on IT & banking rally

Indian stock markets staged a spirited recovery on Thursday, reversing sharp early losses to close higher, with the Sensex rising 185 points and the Nifty crossing 22,700 , aided by strong value buying in IT and banking shares and a sharp rebound in the rupee .

The 30-share BSE Sensex fell steeply in early trade, plunging 1,588 points to touch a day’s low of 71,545.81 , before rebounding over 2,000 points to close at 73,319.55 , up 185.23 points (0.25%). Similarly, the 50-share NSE Nifty dropped 496.85 points early on but recovered to end at 22,713.10 , a gain of 33.70 points (0.15%).

Key gainers included IT leaders HCL Technologies, Infosys, Tata Consultancy Services, and banking giants HDFC Bank, ICICI Bank, Kotak Mahindra Bank, along with Maruti Suzuki, Bajaj Finance, Titan, Axis Bank, Bharat Electronics, and ITC. Laggards included Asian Paints, Reliance Industries, NTPC, and Tata Stee l .

The recovery was underpinned by the rupee , which rebounded sharply after the Reserve Bank of India restricted banks’ net open positions and barred corporates from onshore forward markets. The currency surged over 150 paise , briefly touching the 92 level against the US dollar , improving investor sentiment.

“Markets opened on the back foot as Trump’s renewed threat to strike Iran triggered broad-based selling across Asian markets,” said Vinod Nair , Head of Research, Geojit Investments Ltd. He added that the RBI’s twin regulatory measures, though disruptive to banks, forced dollar unwinding and engineered the rupee’s recovery.

Global cues remained volatile. Brent crude spiked over 7% to USD 108.52 per barrel , while Asian markets, including South Korea’s Kospi (-4.47%) and Japan’s Nikkei 225 (-2.40%), ended lower. European indices also traded in red.

Institutional flows were mixed: FIIs offloaded equities worth Rs 8,331.15 crore , while DIIs bought Rs 7,171.80 crore , reflecting strong domestic support.

After a day of extreme swings, the resilient comeback of Indian markets highlighted the importance of value buying, currency stability, and selective sector strength in offsetting global and geopolitical pressures.