Indian shares snap losing run led by IT, financials as bond markets steady
- Nifty 50 rose 0.64% to 24,231.85, ending a seven-session losing streak
Indian shares snapped a losing streak on Thursday, led by IT and financial stocks and tracking a global rebound after the U.S. Treasury took steps to stem a bond market rout.
The Nifty 50 rose 0.64% to 24,231.85, ending a seven-session losing streak, while the BSE Sensex gained 0.82% to 77,537.72 after four sessions of losses.
They had traded 0.55% and 0.75% higher ahead of closing auction session, on weekly expiry day for the Sensex.
“Market regulator’s interim order relating to alleged expiry-day manipulation linked to CAS signals increased scrutiny of closing auction activity, reinforcing the importance of stronger oversight of concentrated order placement, order cancellations and expiry-day trading strategies,” said Hariselvan Radhakrishnan, founder of HST Wealth.
While Brent hit a near one-month high on Mideast tensions, risk sentiment recovered after the U.S. Treasury said overnight it would double buyback sizes for long-duration debt, aiming to curb the recent surge in yields.
The measures eased investor nerves over rising borrowing costs, sending the dollar lower and supporting global stock markets.
“While the U.S. Treasury’s measures improved the backdrop of global equities, the stronger setup warrants cautious optimism rather than aggressive risk-taking as Brent still remains elevated,” Radhakrishnan said.
Fourteen of the 16 major sectors logged gains. The broader small-caps and mid-caps rose 0.7% and 0.4%, respectively.
IT index gained 0.8%, taking its two-session rise to 1.5%. It had lost about 4% in the previous three sessions.
Financials added 0.7%.
Gold-loan lenders Manappuram Finance and Muthoot Finance gained 2.7% and 3.9%, respectively, tracking a rise in gold prices.
Turtlemint Fintech jumped 4.1% after Jefferies initiated coverage with a “buy” rating.
HDB Financial gained 1.4% after Morgan Stanley upgraded to “overweight” from “equal weight” on improving earnings outlook and attractive entry point.
Power financiers Power Finance Corp and REC fell 2.8% and 2.6% on Morgan Stanley downgrade.