Sensex Gains Over 600 Points, Reversing Four-Day Slump as Market Cap Rises by ₹2 Trillion

Indian equity benchmarks rebounded on Thursday, snapping a four-day losing run. By afternoon trade, the BSE Sensex advanced by more than 600 points while the Nifty 50 traded comfortably above the 24,200 mark. The widespread recovery pushed the aggregate market capitalisation of BSE-listed entities up by ₹2 trillion.

What Happened

The market witnessed strong buying interest throughout the Thursday trading session. By 2:00 PM, the Sensex had climbed 669.34 points or 0.87 per cent to 77,579.02, while the Nifty 50 stood at 24,247.45, up 157.95 points or 0.66 per cent. At 3:00 PM, the Sensex was trading higher by 632.67 points, or 0.82 per cent, at 77,542.35, while the Nifty 50 held gains of 159.95 points, or 0.66 per cent, reaching 24,238.25.

This upward momentum reversed four consecutive days of losses. The total market valuation of all BSE-listed companies rose from Wednesday’s close of ₹490.05 trillion to ₹492.24 trillion, reflecting a ₹2 trillion increase in investor wealth.

Key Highlights

• Index Performance: Sensex hovered around 77,542 with a gain of over 630 points, while Nifty 50 sustained levels above 24,230 by mid-afternoon.
• Wealth Creation: Total market capitalisation of BSE-listed firms rose by ₹2 trillion during the session.
• Tata Motors Rally: Shares of Tata Motors increased 2 per cent to reach ₹487.40 on the BSE, marking a five-month peak and taking its gains to 22 per cent from June low levels.
• Gold Loan NBFCs Surge: Driven by international gold prices hitting a two-month peak, shares of Muthoot Finance, Manappuram Finance, IIFL Finance, and CSB Bank gained up to 5 per cent.
• PFC and REC Fall: Shares of Power Finance Corporation (PFC) and REC declined up to 3 per cent following an investment downgrade by Morgan Stanley over loan growth concerns.
• Coal India Expansion: According to Reuters, Coal India is setting up its first overseas trading office in Singapore to diversify into iron ore as well as critical and strategic minerals.

Why This Matters

The recovery broke a four-day decline in Indian shares, restoring ₹2 trillion in paper wealth to equity investors in a single session. Across sectors, movements reflected specific underlying triggers: gold lenders tracked strength in physical gold prices, automotive heavyweight Tata Motors sustained an extended rebound from June lows, and power sector financiers reacted directly to cautious foreign brokerage commentary on prospective loan expansion.

What to Watch Next

Market participants will monitor whether benchmark indices can sustain these gains into subsequent sessions after arresting the multi-day downtrend. In corporate developments, focus remains on Coal India’s planned operational setup in Singapore and how lenders like PFC and REC navigate the loan growth challenges outlined by analysts.

Frequently Asked Questions

How much did investor wealth rise during the session?

The market capitalisation of BSE-listed firms increased by ₹2 trillion, climbing from ₹490.05 trillion at the previous close to ₹492.24 trillion.

Why did shares of Muthoot Finance and Manappuram Finance advance?

Shares of gold-financing lenders and banks, including Muthoot Finance, Manappuram Finance, IIFL Finance, and CSB Bank, climbed up to 5 per cent alongside rising international gold prices, which reached a two-month high.

Why did PFC and REC shares trade lower?

Both Power Finance Corporation and REC dropped by up to 3 per cent after brokerage Morgan Stanley downgraded the stocks, citing worries regarding loan growth.

Source: Business Standard reporting based on market data and Reuters reports.