Stock Market Recovery: Sensex Jumps 700+ Points From Intraday Low, Nifty Crosses 23,100; IT Shares Lead Gains

Stock Market Today: Sensex Surges 700 Points From Intraday Low, Nifty Tops 23,100 as IT Stocks Rally

Indian stock markets witnessed a sharp recovery on Friday, October 16, with the Sensex bouncing back more than 700 points from its intraday low and the Nifty 50 climbing above 23,100. Strong buying in information technology stocks led the rebound, helping benchmark indices recover from early-session weakness.

At 10:23 am, the BSE Sensex stood at 74,720.55, gaining 404.94 points or 0.54% from its previous close of 74,315.61. The index had dropped to 74,012.99 before recovering to an intraday high of 74,756.37, marking a recovery of 707.56 points from the day’s low.

The NSE Nifty 50 also moved higher, trading at 23,136.95, up 139.60 points or 0.61% from its previous close of 22,997.35. After touching an intraday low of 22,913.80, the index rebounded by 223.15 points to reach a high of 23,143.80.

IT Stocks Power the Market Rally

Information technology shares led the recovery, with the Nifty IT index surging 3.39% to 31,761.35. Major technology companies recorded strong gains, providing significant support to the benchmark indices.

Tech Mahindra jumped 7.24%, emerging as the biggest gainer among Sensex stocks. Infosys advanced 4.87%, while TCS gained 3.58%. HCL Technologies rose 1.43%, and Wipro also traded higher.

The strong performance of IT stocks followed encouraging quarterly results and positive management commentary from leading companies in the sector.

Auto, Media and Metal Stocks Gain

Buying interest extended to several other sectors, although the broader market witnessed mixed trends.

The Nifty Media index climbed 1.38%, while the Nifty Metal index advanced 1.19%. The Nifty Auto index rose 0.71%, and the Nifty PSU Bank index gained 0.54%.

On the other hand, the Nifty FMCG index declined 0.44%, while the Nifty Oil & Gas index slipped 0.51%. The Nifty Financial Services Ex-Bank index fell 0.46%, and the Nifty Midcap Select index lost 0.25%.

Among broader indices, the Nifty 100 gained 0.60%, the Nifty 200 rose 0.47%, and the Nifty 500 advanced 0.40%. The Nifty Smallcap 100 edged up 0.15%, while the Nifty Midcap 100 slipped 0.06%. The Nifty Bank index remained almost unchanged, gaining just 0.04%.

Meanwhile, India VIX rose 0.58% to 14.11, indicating a slight increase in the market’s volatility gauge.

Why Are Indian Markets Showing Strength?

V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said Indian equities had outperformed other markets during the week, with the Nifty 50 rising 668 points over the previous three trading sessions.

He attributed the market’s resilience to a weakening of the AI trade, expectations of potential changes to long-term capital gains taxation in the upcoming Union Budget, and stronger-than-expected second-quarter earnings.

According to Vijayakumar, robust results from major IT companies and positive management outlooks have helped revive the IT index by approximately 9%, supporting the broader market.

He also expects earnings from telecommunications, banking, automobile and metal companies, particularly producers of copper, aluminium and zinc, to provide further fundamental support.

US Bond Yields and Crude Oil Remain Key Risks

Vijayakumar highlighted the decline in the US 10-year bond yield to 5.07% and the strength of the rupee as developments that could help slow foreign institutional investor (FII) selling.

However, he cautioned that foreign investors may continue to sell Indian equities while the US 10-year yield remains above 5% and Brent crude prices stay above $100 per barrel.

Large-Cap Buying Supports Recovery

Commenting on the current market trend, Vijayakumar said investors were increasingly looking for value in large-cap stocks. He added that short-covering in this segment could accelerate the ongoing recovery.

With IT stocks leading the gains and benchmark indices recovering sharply from their intraday lows, market participants will closely monitor corporate earnings, foreign investment flows, crude oil prices and global bond yields for further direction.