Stock Market Recovers: Reliance and Metals Propel Gains
India's stock market witnessed a significant rebound on Thursday, ending a three-session losing streak. The Nifty 50 climbed by 1.17% to reach 24,765.90, while the BSE Sensex increased by 1.14% to touch 80,015.90. This surge was primarily driven by Reliance Industries Ltd. and metal stocks, indicating a recovery in global risk appetite following a heavy selloff prompted by the ongoing Iran war.
Reliance Industries saw its shares rise by 3.3% after experiencing a decline of about 4.5% in the previous sessions. Analysts from brokerages like JM Financial and CLSA commented that the recent correction in Reliance's stock was excessive. Anita Gandhi from Arihant Capital Markets noted that the market's uptick was largely due to Reliance's rebound, which played a crucial role in lifting the benchmark indices.
The recovery also saw gains in energy and oil and gas sectors, which rose by 1.9% and 1.6%, respectively. Out of 3,336 stocks in the NSE universe, 2,210 advanced, indicating a positive sentiment among investors. Gandhi explained that the rise was influenced by attractive valuations post-selloff and easing fears of immediate crude supply constraints due to supportive comments from the U.S. President.
On the metal front, Hindalco Industries and Nalco Ltd. witnessed increases of 3.6% and 6%, respectively, as aluminium prices surged amid supply concerns. The disruption in shipments from Aluminium Bahrain, attributed to the Iran conflict, has heightened these concerns, further boosting the metal index by 2.3%.
In other stock movements, Vodafone Idea Ltd. saw a surge of 3.60% following reports that the Department of Telecommunications is reassessing license fees, potentially reducing them by 60-65%. Meanwhile, Cera Sanitaryware Ltd. reported a 50% reduction in gas supply due to the Iran war, although it maintains separate supply arrangements to mitigate production impacts.
The overall sentiment was also reflected in the currency market, with the Indian rupee recovering from its all-time low against the dollar, gaining 48 paise to trade at 91.57. However, concerns over rising crude oil prices and foreign investor selling amid the ongoing conflict continue to exert pressure on the markets.
