Indian equities rebound on easing US yields amid tentative technical momentum
Benchmark Indian indices posted broad-based gains on Thursday driven by declining US bond yields and short covering, though neutral momentum indicators suggest the recovery requires further confirmation.
On Thursday, the Sensex rose 628 points, or 0.82%, to settle at 77,537.72, while the Nifty 50 added 154 points to close at 24,231.85. This advance elevated the aggregate market capitalization of BSE-listed companies above ₹491 trillion, compared to ₹488.70 trillion the prior day.
Equities were supported by declining US bond yields, short covering, and positive global cues. Breadth reflected widespread participation across the exchange, as nearly 2,450 stocks advanced against roughly 1,875 declines. The Nifty Midcap 150 and Smallcap 250 indices also posted modest gains of 0.36% and 0.58%, respectively.
Sector performance was predominantly positive, led by a 2.13% surge in the media index and a 1.41% rise in realty stocks. Private banks and FMCG companies also contributed to the upside with gains of 0.89% and 0.82%. Conversely, state-owned banks and oil and gas producers showed minimal movement, ending the session virtually flat.
Although the benchmark index closed above its 50-day moving average, its Relative Strength Index remains at 48.33, staying below the neutral 50 threshold. The index faces immediate resistance near 24,300 at the 21-day moving average, requiring a sustained break to target the 200-day moving average at 24,700. A failure to hold current levels could expose the market to renewed selling pressure toward the 23,900 support zone.
The banking sector mirrored this cautious tone, with the Nifty Bank index adding 0.45% to close at 57,495.90 while consolidating tightly around key moving averages. Momentum indicators for the financial gauge remain flat near the zero line, signaling an equilibrium between buyers and sellers. A decisive breakout above the 57,700 resistance level is needed to confirm a sustained upward trajectory for the sector.
Within this recovering environment, market analysts are highlighting specific infrastructure and digital themes. Buy recommendations have been issued for VA Tech Wabag and Anant Raj, pointing to expanding water-treatment order books and rapid data centre capacity expansions. These selections reflect broader investor interest in companies benefiting from government infrastructure spending and data localisation tailwinds, despite ongoing geopolitical uncertainties in West Asia.
