Nifty reclaimed 24,000, while Sensex surged 791 points on buying.
Banking, IT and realty stocks led gains, driving benchmark recovery.
Lower crude prices and rupee strength boosted market sentiment.
Indian benchmark indices staged a strong recovery on Wednesday, with the Nifty reclaiming the 24,000 mark and the Sensex surging nearly 800 points, supported by gains in banking, financial services, information technology and realty stocks.
The BSE Sensex rose 790.54 points, or 1.04%, to close at 76,991.22, while the NSE Nifty 50 advanced 197.55 points, or 0.83%, to settle at 24,021.65. The rally came a day after markets witnessed a sharp selloff amid concerns over global technology stocks and expectations of higher US interest rates.
1 June 2026
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Market breadth remained positive, with 2,107 stocks advancing, 1,970 declining and 162 remaining unchanged.
Banking And IT Stocks Lead Recovery
The recovery was driven by strong buying in heavyweight banking and information technology stocks, aided by easing crude oil prices and encouraging comments from Reserve Bank of India Governor Sanjay Malhotra regarding inflation and interest rates.
The Nifty Private Bank index gained 1.8%, while the Nifty IT and Realty indices surged around 2% each, emerging as the top-performing sectors.
Among Sensex stocks, InterGlobe Aviation climbed 4.32%, followed by Trent (3.86%), Tech Mahindra (3.32%), Bajaj Finance (2.91%) and Infosys (2.87%).
On the downside, Tata Steel fell 1.88%, while NTPC, Maruti Suzuki, Bharat Electronics and Bharti Airtel ended among the major losers.
Sectorally, all indices ended higher except auto, metal, energy and power. Realty and IT led gains, while banking and financial stocks provided the biggest support to benchmark indices.
Broader Markets Remain Mixed
Despite the sharp gains in headline indices, broader markets delivered a relatively muted performance.
The Nifty Midcap index ended marginally higher by 0.10%, while the Nifty Smallcap index gained 0.4%.
During the session, broader indices underperformed benchmark indices, reflecting selective buying concentrated in large-cap banking and technology names.
Market participation remained healthy, however, with 86 stocks touching fresh 52-week highs and 78 stocks locked in upper circuits. Meanwhile, 26 stocks hit 52-week lows and 64 stocks were locked in lower circuits, highlighting stock-specific volatility.
IPO activity remained mixed. At the close, Advit Jewels IPO was subscribed 38.24 times, while CSM Technologies IPO and Waterways Leisure Tourism IPO were subscribed 0.24 times and 0.45 times, respectively.
Technical Indicators Signal Strength
According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, Nifty's rebound was significant after the benchmark declined more than 1% in the previous session.
He noted that the index formed a sizeable bullish candle on the daily chart, reclaimed its 50-day exponential moving average (EMA), and witnessed an improvement in momentum indicators, signalling renewed buying interest.
Shah said Nifty Realty and Nifty IT emerged as the best-performing sectors, while broader markets continued to display underlying strength despite some profit-booking towards the close.
Rupak De, Senior Technical Analyst at LKP Securities, said the index recovered sharply after finding support at a rising trendline and successfully reclaimed both the 20EMA and 50EMA on the hourly timeframe.
He added that the formation of a Piercing Line candlestick pattern near the 20EMA support zone points to the possibility of a stronger short-term rally. According to De, immediate resistance is placed at 24,500 and 24,800, while 23,800 remains a crucial support level.
Rupee Gains As FII Selling Eases
The Indian rupee strengthened modestly to close at 94.65 against the US dollar, compared with the previous close of 94.73.
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said the currency benefited from the absence of aggressive foreign institutional investor selling in recent sessions.
However, he cautioned that a stronger US dollar index above 101 continues to limit gains for emerging-market currencies, including the rupee. He expects the domestic currency to trade in the 94.40-95.00 range in the near term, with foreign fund flows and dollar movements remaining key drivers.
While concerns around weak monsoon progress and the possibility of further US rate hikes persist, investors used the previous session's correction to accumulate quality large-cap stocks, helping benchmark indices reclaim lost ground and close firmly above key technical levels.
