Whalesbook
The rally gained significant momentum as investors strategically bought stocks that had recently fallen. This buying spree followed a nearly 4% drop in benchmark indices over the previous four sessions, linked to rising crude oil prices and market uncertainty after the Prime Minister's austerity appeal. Wednesday's modest gains had hinted at stabilization.
Heavyweight Stock Performance
Key stocks like Bharti Airtel, HDFC Bank, ITC, and Reliance Industries saw sharp gains, boosting overall investor sentiment. Bharti Airtel jumped nearly 4% after reporting its March quarter results. HDFC added 3%, ITC climbed 1.5%, and Reliance Industries rose 0.8%, significantly lifting the indices.
Global Market Influence
Global markets also provided a boost. Asian markets were mixed, with South Korea's KOSPI up 1.75% and Hong Kong's Hang Seng adding 0.25%, while Japan's Nikkei 225 slipped. U.S. markets closed higher overnight, with the S&P 500 and Nasdaq Composite hitting record highs, fueled by tech stocks. SEBI-registered analyst Hariprasad K noted that the rally in U.S. equities improved global risk appetite, even with ongoing inflation concerns and expectations of prolonged high interest rates from the U.S. Federal Reserve.
Geopolitical and Expiry Factors
Investor optimism was also supported by reported progress in U.S.-China discussions over maritime transit tolls. An agreement that no nation should impose shipping tolls in the Strait of Hormuz offered temporary relief, suggesting efforts to stabilize a key energy route. However, wider geopolitical issues still temper overall risk appetite. The weekly expiry of Sensex derivatives contracts on Thursday also added to intraday volatility as traders adjusted their positions.