Indian financial markets showed signs of tentative recovery on Thursday after a recent sell-off, as investors reacted to global risk sentiment and easing fears of a broader geopolitical escalation. NIFTY 50 rose about 0.61% to roughly 24,631 points, while the BSE Sensex gained approximately 0.54% to around 79,530, reviving some losses from earlier sessions when both benchmarks tumbled amid heightened economic risk and equity fear gauges spiking.
Key Highlights
- Sensex and Nifty rebounded sharply amid easing geopolitical concerns and selective heavyweight buying.
- Rupee touched record low near 92 before RBI intervention stabilized currency.
- Gold prices remained elevated as investors sought safety during market volatility.
Fourteen of 16 core sectors edged higher, with energy, oil & gas and mid-cap stocks attracting buying interest after three straight sessions of declines. Notable gains were seen in Reliance Industries, which rallied nearly 3% as bargain hunters stepped in. Despite the uplift, analysts cautioned that the rebound may be short-lived if crude oil prices remain elevated and external uncertainties persist.
The Indian rupee continued to trade under pressure, sinking past the ₹92 mark against the US dollar, a historic low that reflected investor concerns over global conflicts and oil supply disruptions. The sharp depreciation marked heightened demand for the dollar as a safe haven, even as the Reserve Bank of India reportedly intervened in the foreign exchange market to stem the slide, pushing the currency back toward approximately ₹91.54 to the dollar in early trade. Currency strategists say the rupee’s volatility mirrors broader capital flow dynamics and elevated risk aversion among global investors.
Also Read: Stock Markets Plunge as Oil Prices Spike, Rupee Hits All-time Low
Gold and precious metals continued to appeal to risk-averse participants, with bullion prices sustaining high levels across major Indian cities. As of current rates, 24-carat gold hovered near ₹1.61 lakh–₹1.62 lakh per 10 grams in Mumbai, Chennai and Delhi, while silver traded around ₹2.65 lakh–₹2.66 lakh per kilogram, buoyed by safe-haven demand amid geopolitical tensions. Precious metals have historically drawn interest during periods of market stress and currency weakness, serving as a hedge for inflation and investment risk.
Market participants highlighted that persistent geopolitical risks, oil price volatility and foreign portfolio outflows remain key determinants of near-term trends. Investors are watching closely for cues from global equities, crude oil movements, and domestic economic indicators that could shape the trajectory of equities, currency and commodity markets in the coming sessions.
