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Dalal Street could take a breather on Thursday after a sharp rally on Wednesday. The traders will keep an eye on global trends, crude oil movement and sustainability of the recent momentum-led upmove before initiating positions, and the Sensex and Nifty 50 are expected to open on a cautious note.

The BSE Sensex climbed 940.73 pts (1.22 per cent) to 77,958.52, and the NSE Nifty 50 rose 298.15 pts (1.24 per cent) to 24,330.95. But the Nifty stood calm and ended comfortably above the 24,300 mark. And Nifty ended much above and near today’s highest level. Indices, however, saw some volatility during the trade.

But early cues seem to signal a flat opening on Thursday. GIFT Nifty was seen trading at levels around 24,455-24,460, which is a tad down from the earlier Nifty futures closing, signalling a flat to cautious opening.

Why Was The Rally So Fierce Wednesday?

Buoyed by news about the USA and Iran being close to a potential agreement that may reduce the friction in the Strait of Hormuz, the better global sentiments gave a major boost to the Dalal Street rally. A fall in crude oil and support for the Indian rupee was triggered by the developments, which served as a trigger.

The reports helped the benchmark indices close higher as buying picked up in the late stages of the session.

The broader market also caught on, reflecting improving investor confidence, but the rally wasn’t just limited to frontline stocks. The Nifty Midcap was higher by 1.76%, and the Smallcap index was higher by 1.93%.

Sectoral Rally Spreads

The interest in buying was widespread across sectors.

Most sectoral indices moved up between 2% and 3%, with PSU Banks, Private Banks, Realty, Auto and Pharma stocks leading the gains. Banking counters saw robust traction amid improved overall risk appetite and easing global concerns.

However, FMCG remained the lone underperformer on the back of profit booking in select stocks and concerns about slowing consumption trends.

Stocks Remain Under Focus Today

Several companies are likely to see action in Thursday’s session on the back of earnings reports and corporate news.

Bajaj Auto Limited

Bajaj Auto put in a strong show in Q4FY26 with standalone net profit increasing 34 per cent year-on-year to ₹2,746 crore as compared to ₹2,049 crore in the year-ago period. Good earnings growth and a buyback announcement from the company should keep the stock active.

Paytm

Fintech major Paytm has posted a net profit of Rs 184 crore in the March quarter against a loss of Rs 540 crore last year. The improvement was due to improved operational performance and cost control.

Meesho (India)

E-commerce platform Meesho has posted a consolidated loss of ₹166 crore for the quarter ended September against a loss of ₹1,391 crore a year ago, helped by better business efficiency and operational momentum.

Biocon Ltd

Biocon may continue to attract attention after the company denied media reports on succession planning and leadership transition involving founder Kiran Mazumdar-Shaw. The clarification comes after the stock moved in the wake of the reports.

Global Markets Continue to be Supportive

Global equities continued to trade firmly, driven by optimism over geopolitical developments.

Asian shares

Most Asian markets built on earlier gains after fresh comments from US President Donald Trump on Iran.

Japan’s Nikkei 225 has also broken through 62,000 for the first time, to a record high of 62,200.29, up nearly 5% from the opening. The broader Topix has gained more than 2%.

The markets in South Korea are down with the Kospi falling by 1.22% and the Kosdaq index declining by 0.86%.

US markets hit record highs overnight

Wall Street managed to climb to new record highs over the course of yesterday’s session amid easing Middle East tensions.

The Dow Jones Industrial Average gained 612.34 pts at 49,910.59 (+1.24%), while the S&P 500 was up 1.46% to 7,365.12, and the Nasdaq composite reached an all-time high of 25,838.94, up by 2.02%.

A number of the US tech stocks are now trading higher on the day, as the semiconductor stocks saw an increase driven by robust earnings figures from the chipmaker AMD.

What Traders Are Watching Today

Market participants will be watching:

GIFT Nifty trends in the pre-market open
Crude oil flow and rupee performance
Developments in US-Iran talks
Sector responses to Q4 earnings
Global market sentiment, foreign fund flows

The tone remains positive after Wednesday’s move through 24,300, but analysts suggest traders may want to take a stock-specific approach given high valuations and global uncertainty.

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)

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