Sensex Rebounds Over 700 Points From Day’s Low, Nifty Climbs Above 23,100 as IT Stocks Rally

Stock Market Today: Sensex Rebounds Over 700 Points From Day’s Low, Nifty Crosses 23,100 as IT Shares Rally

Indian equity markets staged a strong comeback during Friday morning trade on October 16, as benchmark indices recovered sharply from their intraday lows. The BSE Sensex climbed more than 700 points from its lowest level of the day, while the NSE Nifty 50 moved back above 23,100, supported by strong buying in information technology stocks.

At 10:23 am, the Sensex was trading at 74,720.55, up 404.94 points or 0.54% from its previous close of 74,315.61. After slipping to an intraday low of 74,012.99, the index rebounded to 74,756.37, recovering 707.56 points from its lowest level.

The Nifty 50 was at 23,136.95, gaining 139.60 points or 0.61% against its previous close of 22,997.35. The index had dropped to 22,913.80 earlier in the session before recovering 223.15 points and touching an intraday high of 23,143.80.

IT Stocks Lead the Market Recovery

Information technology shares emerged as the key drivers of the rebound, with the Nifty IT index jumping 3.39% to 31,761.35 amid broad-based gains across major technology companies.

Tech Mahindra led the gains among Sensex constituents, surging 7.24%. Infosys advanced 4.87%, while Tata Consultancy Services (TCS) rose 3.58%. HCL Technologies gained 1.43%, with Wipro also trading among the gainers in the technology sector.

The rally in IT shares provided significant support to the benchmark indices and helped improve overall market sentiment during the morning session.

Sectoral Trends Remain Mixed

Several other sectoral indices also traded in positive territory. The Nifty Auto index gained 0.71%, while the Nifty Media and Nifty Metal indices advanced 1.38% and 1.19%, respectively. The Nifty PSU Bank index rose 0.54%.

However, some sectors continued to face selling pressure. The Nifty FMCG index declined 0.44%, while the Nifty Oil & Gas index slipped 0.51%. The Nifty Financial Services Ex-Bank index lost 0.46%, and the Nifty Midcap Select index fell 0.25%.

Broader market performance was largely positive but lacked uniform momentum. The Nifty 100 rose 0.60%, the Nifty 200 gained 0.47%, and the Nifty 500 advanced 0.40%. The Nifty Smallcap 100 edged up 0.15%, whereas the Nifty Midcap 100 dipped 0.06%. The Nifty Bank index was nearly flat, rising just 0.04%.

Meanwhile, the India VIX, which measures expected market volatility, increased 0.58% to 14.11.

What Is Driving the Market’s Resilience?

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

According to Vijayakumar, the recovery has been supported by a weakening of the AI trade, expectations of possible changes to long-term capital gains (LTCG) taxation in the upcoming Union Budget, and encouraging second-quarter corporate earnings.

He noted that better-than-expected results from major IT companies, accompanied by positive management commentary, had helped revive the IT index by around 9%, contributing to the resilience of the benchmark indices.

Vijayakumar also expects results from telecom companies, banks, automobile manufacturers and metal producers, particularly those dealing in copper, aluminium and zinc, to provide further fundamental support to the market.

US Bond Yields and Foreign Investor Selling in Focus

The market strategist also highlighted the decline in the US 10-year bond yield to 5.07% and the relative strength of the Indian rupee as developments that could help moderate selling by foreign institutional investors (FIIs).

However, he cautioned that foreign investors could continue reducing their exposure as long as the US 10-year bond yield remains above 5% and Brent crude prices stay above $100 per barrel.

Value Buying May Support Further Gains

Commenting on the ongoing recovery, Vijayakumar said the market was witnessing value buying in large-cap stocks, with short-covering potentially accelerating the upward movement.

The rebound in the Sensex and Nifty, supported by a strong rally in IT shares, signals improved sentiment during the morning session. Going forward, investors will monitor corporate earnings, foreign fund flows, crude oil prices and global bond yields to assess whether the recovery can be sustained.