SENSEX, NIFTY50 stage strong recovery, end higher for second straight session led by IT stocks

The Indian equity benchmarks staged a strong recovery from intraday low levels on Thursday, April 2, as sentiment turned positive after Indian rupee staged a strong rebound against the dollar from record low levels on likely intervention by the Reserve Bank of India (RBI). The SENSEX climbed as much as 2,023 points from the day's lowest level and NIFTY50 index touched an intraday high of 22,685 after hitting a low of 22,182.55.

The SENSEX ended 185 points higher at 73,320 and NIFTY50 index advanced 34 points to close at 22,713.

Earlier in the session, SENSEX and NIFTY50 indices staged a gap down opening after US President Donald Trump hinted at prolonging the war in Iran. Trump said the military could end its Iran offensive in two to three weeks.

Trump added that the US will carry out aggressive strikes on Iran over the next two to three weeks and is nearing completion of its main strategic objectives in the war.

Addressing a war-weary US public, Trump said his military had delivered "swift, decisive, overwhelming victories on the battlefield," during 32 days ‌of military strikes and that Iran was no longer a security threat.

Back home, rupee staged a strong recovery against the US dollar as the domestic unit surged by more than 200 paise to hit 92.89 against the dollar backed by Reserve Bank's move to restrict banks' net open position in the onshore forward delivery market.

The local currency breached the 95 level on Monday before closing at 94.70 versus the greenback. It had settled at a historic low of 94.84 against dollar on Friday, prompting the RBI to intervene.

Index heavyweights like HDFC Bank, Infosys, HCL Technologies, Tata Consultancy Services, ICICI Bank and Bajaj Finance were top movers in the SENSEX, they collectively contributed 300 points towards gain in the SENSEX.

Eight of 15 major sector gauges compiled by the National Stock Exchange ended higher led by the NIFTY IT index's 2.6% gain. NIFTY Bank index staged a a strong recovery during the session as the measure surged by as much as 1,777 points from the day's lowest level and touched an intraday high of 51,731.95 after touching a low of 49,954.85.

NIFTY Financial Services, FMCG, metal, realty and private bank indices also closed in the positive territory.

On the flip side, pharma shares faced selling pressure and the gauge of pharma stocks dropped nearly 1% after a report suggested that the Trump administration is set to announce tariffs as soon as Thursday ‌on drugmakers that have not struck deals guaranteeing low prices in the US, Bloomberg News reported citing people familiar with the plan.

NIFTY auto, and consumer durables indices also closed in the red.

Mid- and small-cap shares ended lower but came off the intraday lows. The NIFTY Midcap 100 index declined 0.26% and NIFTY Smallcap 100 index slipped 0.4%.

HCL Tech was top gainer in the NIFTY50 index, the stock advanced 3% to close at ₹1,395. Tech Mahindra, Tata Consumer Products, Wipro, Infosys, Hindalco, TCS, Bajaj Finance, HDFC Bank and Nestle India between 0.8% and 2.5%.

On the flip side, Asian Paints, Eicher Motors, Sun Pharma, Eternal, Bajaj Auto, NTPC, Grasim and HDFC Life were top losers in the NIFTY50 index.

The overall market breadth was positive as 2,020 shares ended higher while 1,216 closed lower on the NSE.