Bulls strike! Sensex soars 800 pts after ₹10 tn rout

The Indian stock market experienced a significant rebound on Friday, with the Sensex and Nifty breaking out of an eight-week losing streak. After a sharp sell-off the previous day, the Sensex surged over 800 points to 72,472 while the Nifty 50 climbed more than 250 points to close above the 22,500 level. This strong performance added more than Rs 4 lakh crore to the total market capitalisation of listed companies, bringing it to nearly Rs 465 lakh crore.

ITC shares surged nearly 5%, while stocks of TCS, Adani Ports, Infosys, HCL Tech, L&T, HDFC Bank, and UltraTech Cement also rose by up to 5% each, leading the gains in the Sensex. Reliance Industries was the only stock on the Sensex to end in the red, falling 0.55%.

Several factors contributed to the market's recovery. Trump announced that the US would not launch any strikes on Iran before the midterm elections on November 3rd, easing concerns over a potential Middle East conflict. Oil prices also eased as a result of Trump's announcement, with Brent crude futures dipping below $103 per barrel and WTI Crude futures trading near $90 per barrel. The easing of oil prices eliminated supply concerns, further boosting investor sentiment.

Strong buying in IT stocks also played a crucial role in the market's rally. Tata Consultancy Services (TCS) reported a 15% year-on-year growth in its consolidated net profit for the second quarter, while OpenAI reported its annualized revenue for September at nearly $50 billion, lower than the figure previously indicated. The rupee jumped 23 paise to 96.65 against the US dollar, driven by a softening US dollar and a possible intervention by the Reserve Bank of India.

Bond yields cooled down slightly, bringing down bond yields from multi-year highs. Additionally, Nifty IT gained 3% to lead gains among sectors, while various other indices like Nifty FMCG, Nifty PSU Bank, and Nifty Private Bank also gained 1-2% each.