Indian stock markets rebounded sharply as buying in information technology shares and bargain hunting following the previous session's steep sell-off lifted benchmark indices. The recovery unfolded despite lingering concerns over elevated crude oil prices, foreign investor outflows, and tighter monetary policy stances.
The BSE Sensex ended 879.09 points, or 1.23%, higher at 72,472.33, while the Nifty 50 advanced 288.65 points, or 1.30%, to close at 22,520.45. This performance followed a sharp drop during the prior session when the Sensex plunged 1,045.46 points and the Nifty fell 371.25 points. Investors stepped in to purchase equities at lower levels while IT shares climbed back despite recent headlines regarding US regulatory developments affecting the green-card programme for technology firms.
Information technology shares emerged as leading contributors to the session's gains, pushing the Nifty IT index up by 3.02%. The sector found support after major players clarified their position on US labour certification changes, alongside positive second-quarter financial reports and growing artificial intelligence revenues. Other sectoral indices also finished in positive territory, including advances in fast-moving consumer goods, public sector banks, and automotive equities, while oil and gas issues recorded slight losses.
Market participants noted that the rebound was bolstered by short covering and value buying following the recent market correction. However, analysts cautioned that overall market stability remains vulnerable to external pressures such as persistent foreign institutional selling, high global bond yields, and crude oil staying above key thresholds.