Sensex Goes Up After Investors Had the Chance to Bargain; Voda Idea jumps over 4%.

Indian equity markets rebounded on Thursday, with the Sensex gaining 262 points and the Nifty nearing 22,250, led by metal, media, and PSU bank stocks. Vodafone Idea rallied 4% amid bargain hunting from investors.

Indian stock markets, comprised of shares and bonds, had been on a downward spiral for three days. On Thursday, they were once again up in the air, with investors reveling in discounted prices across the board. The S&P BSE Sensex notched up 262 points, or 0.36%, to settle at 73,206, and the Nifty50 index, too, joined the party, closing at 22,242, just off the 22,250 level.

The widely sourced rally has been driven by the indices for Metals, Media, and Public Sector Banks, all of which soared over 1% each. The Power Grid, IndusInd Bank, Sun Pharma, Wipro, Mahindra & Mahindra, Tata Motors, Reliance Industries, ICICI Bank, and Larsen & Toubro were the top gainers, propelling the benchmarks to spur aggressively.

Wider markets, which include the BSE MidCap and SmallCap indices, performed tip-top with the frontline indices, rising by 0.8% each, which might be a supportive indication of widespread participation.

Vodafone Idea rose by 4% on the stock market for individual companies, as investors believed that most positively on the same operator’s just last fundraising move.

Global markets were still on alert because a war in West Asia between Iran and Israel kept on escalating, and sentiments remained negative. Dr. V.K. Vijayakumar, the Chief Investment Strategist at Geojit Financial Services, predicted: "Till this uncertainty is dealt with, the market will not go up rapidly in either direction."

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Vijayakumar said that the market was repositioning for the expectation of higher interest rates being here for longer, given the fact that inflation has been stubbornly with us. It is like the market is pre-consolidated on 2 rate cuts this year, and the latter is back-to-back. Adding that the US 10-year bond yield is holding around 4.57 %, we are still due for more foreign institutional selling. This is going to put pressure on the large-cap stock.

Fundamental factors, like long-sightedness and investment in high-quality large-cap stocks, gifted investors with cheap valuations of stocks. Hence, the market had to grapple with uncertainties and tough monetary policies from abroad.