Nifty gains 154 points, Sensex ends 628 points higher as US Treasury action eases bond yield pressure

MUMBAI: Domestic benchmark indices ended higher on Thursday, snapping a week-long losing streak, after action by the US Treasury to contain the rise in global bond yields helped improve investor sentiment. The Nifty 50 gained 153.55 points, or 0.64 per cent, to close at 24,231.85, while the BSE Sensex rose 628.04 points, or 0.82 per cent, to end at 77,537.72.

The market rebound came despite Brent crude oil prices rising more than 2 per cent to USD 94 per barrel at the time of reporting. Investors found some relief from easing pressure on global bond yields following the US Treasury’s intervention.

Vinod Nair, Head of Research, Geojit Investments Limited, said the US Treasury’s move provided relief to markets and triggered a broad-based recovery. “Markets found much-needed relief after the U.S. Treasury stepped in to contain the surge in global bond yields, triggering a strong broad-based rebound and ending the domestic market’s week-long losing streak,” Nair said.

He said the intervention pushed the dollar lower, while a firmer rupee and easing yield pressures improved the attractiveness of emerging markets. “The recovery was widespread across sectors, driven primarily by strength in IT and financial stocks, as a cooling yield environment supports spending,” Nair said.

On the domestic market outlook, he said investors remained cautious because crude oil prices continued to remain high amid unresolved US-Iran tensions. “Yet, the market’s optimism remains guarded as stubbornly high crude oil prices, driven by unresolved U.S.-Iran tensions, continue to cast a shadow over inflation and corporate profitability,” Nair said.

On the NSE, almost all major sectoral indices closed in positive territory. The Nifty Media index was among the biggest gainers, rising 2.13 per cent. Nifty Private Bank gained 0.89 per cent, while Nifty FMCG rose 0.82 per cent. The Nifty IT index gained 0.79 per cent, Nifty Auto rose 0.40 per cent, Nifty Pharma increased 0.39 per cent and Nifty Metal gained 0.28 per cent.

Among Nifty 50 stocks, Eternal, Shriram Finance, Kotak Bank and ITC were among the top gainers. Tata Consumer, Hindalco, IndiGo, Nestle India and HCL Tech were among the top losers.

Nair said the near-term direction of the market would depend on global bond yields, energy prices and geopolitical developments. “The near-term outlook is likely to hinge on the direction of global yields, energy prices and geopolitical developments, with sustained stability needed to keep earnings momentum and foreign inflows intact,” he said.

In other Asian markets, most major indices also closed higher. Japan’s Nikkei 225 gained 1.20 per cent to close at 66,120, while Hong Kong’s Hang Seng rose 0.91 per cent to 25,730.Taiwan’s weighted index gained 0.48 per cent to close at 44,933, while South Korea’s KOSPI surged 5.57 per cent to 6,852. Singapore’s Straits Times was the exception, closing lower. (ANI)