Sensex jumps 1,534 points, Nifty surges to nearly 3-week high led by banks, Reliance, IT stocks

MUMBAI: Benchmark stock index Sensex rallied 1,534 points or over 2 per cent to close at a three-week high on Thursday following heavy buying in banks, IT and Reliance Industries amid easing crude oil prices.

The 30-share BSE Sensex jumped 1,533.72 points, or 2.11 per cent, to settle near the day's high at 74,315.61. During the day, it surged 1,548.4 points, or 2.12 per cent, to 74,330.29.

The 50-share NSE Nifty climbed 374.65 points, or 1.66 per cent, to close at 22,997.35, its highest level since September 25.

From the 30 Sensex firms, Tech Mahindra jumped 4.61 per cent, ICICI Bank 4.17 per cent, Bharti Airtel 2.94 per cent, Eternal 2.77 per cent, HCLTech 2.58 per cent, HDFC Bank 2.51 per cent and TCS 2.28 per cent.

Reliance Industries surged 4.03 per cent after its digital and telecom arm, Jio Platforms, set a price band of Rs 1,065 to Rs 1,119 per share for its initial public offering, which could raise about Rs 30,213 crore at the top of the range, making it India's largest.

The IPO, comprising a fresh issue of up to 27 crore equity shares of Rs 10 face value each, opens for subscription on Wednesday, October 21, and closes on Friday, October 23.

Bharat Electronics, Trent and Hindustan Unilever were the laggards among Sensex shares.

Brent crude, the global oil benchmark, declined 2.34 per cent to USD 103.6 per barrel.

"Indian equities rallied sharply as concerns over stretched AI valuations and higher US inflation triggered a sell-off across tech-heavy global markets, improving India’s relative appeal and encouraging rotation toward domestic large-cap technology, private financials and defensive heavyweights," Vinod Nair, Head of Research, Geojit Investments Limited, said.

Correcting bond yields, rupee stability and softening crude prices further supported sentiment, while hopes of possible reconsideration of equity taxation added to risk appetite, Nair added.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,857.44 crore on Wednesday, according to exchange data.

"Indian equity benchmarks staged a broad-based rebound on Thursday as buying gathered pace through the session. The gains erased Wednesday’s losses, with both indices holding near their intraday highs despite a weak global backdrop. Information technology stocks led the advance, while private banks, automakers and oil and gas companies also attracted strong buying interest," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

The rebound has improved the near-term tone, supported by IT strength, enthusiasm around the Jio offering and a firmer rupee, he added.

In Asian markets, South Korea's Kospi tumbled 7.57 per cent, and Japan’s 225 index fell 4.90 per cent. Shanghai's SSE Composite index and Hang Seng index also ended lower.

Markets in Europe traded mixed. US markets ended lower on Wednesday.

On Wednesday, the Sensex fell 251.89 points, or 0.34 per cent, to 72,781.89. The Nifty dropped 99.25 points, or 0.44 per cent, to end at 22,622.70.