Indian shares recovered from significant early losses to close modestly higher on Thursday, with the BSE Sensex rising 185.23 points (0.25%) to 73,319.55 and the NSE Nifty gaining 33.70 points (0.15%) to 22,713.10. The market initially reacted negatively to U.S. President Donald Trump’s comments regarding military actions in the Middle East, which raised concerns over escalating geopolitical tensions and their potential impact on energy prices. Oil prices surged over 7%, while the dollar and bond yields also increased.
The recovery in Indian markets was fueled by value buying and a sharp rebound in the rupee, which strengthened by over 200 paise to 92.89 against the dollar. This was supported by the Reserve Bank of India’s new measures aimed at stabilizing the currency and managing market volatility. Key sectors such as IT, banks, and financials led the afternoon rally, with notable gains from Bajaj Finance, HDFC Bank, and TCS.
The day’s trading highlights the market’s sensitivity to geopolitical developments and currency dynamics, emphasizing the importance of monitoring these factors for future investment strategies.
Source: nasdaq.com