Sensex Rebounds Over 400 Points, Nifty Holds Above 24,200 as Markets Snap Losing Streak
Mumbai, August 20, 2026: Indian equity markets staged a strong recovery on Thursday, with the Sensex rising more than 400 points and the Nifty trading around the 24,200 level, as falling US bond yields and short-covering improved investor sentiment.
Both benchmark indices opened with a sharp gap-up. The Sensex opened at 77,468.45, compared with its previous close of 76,909.68, and touched an early high of 77,494.79. The Nifty opened at 24,225.45, against its previous close of 24,078.30.
At the time of reporting, the Sensex was trading at 77,392.32, up 482.64 points or 0.63%, while the Nifty stood at 24,191.45, gaining 113.15 points or 0.47%.
Short-Covering, Falling US Bond Yields Support Markets
The recovery came after the benchmark indices had suffered a prolonged losing streak. Analysts attributed Thursday's rebound to short-covering, declining US bond yields and improving sentiment across several sectors.
All sectoral indices were trading in positive territory, with Nifty IT emerging as the top performer after gaining more than 1%. Broader market indices were also trading in the green.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the rally had fundamental support from revenue and earnings growth.
He highlighted segments such as CDMO, precision engineering and power infrastructure, saying companies in these areas were performing strongly and management commentaries remained positive.
Vijayakumar said the market appeared poised for a short-term reversal after declining steadily for 12 trading sessions. He noted that the market had entered oversold territory, making a mild rally driven by short-covering likely.
Nifty 24,000 Support Remains Crucial
Market analyst Vipin Dixena said the market was attempting to break its seven-session losing streak, although elevated crude oil prices and geopolitical uncertainty continued to pose risks.
He also pointed to continued buying by foreign institutional investors as a positive factor for Indian equities.
From a technical perspective, the 24,000 level remains an important support zone for the Nifty, while 24,200-24,250 is seen as the immediate resistance area.
A sustained move above 24,200 could indicate that the recent correction is losing momentum. However, a failure to hold 24,000 could expose the index to further downside towards 23,850-23,750, Dixena said.
IT Stocks Among Major Gainers
On the NSE, Shriram Finance, Infosys, Bajaj Finance, Eternal, Kotak Bank, Wipro, HDFC Bank, Bharti Airtel, Hindustan Unilever, Axis Bank, TCS, Cipla, L&T, BEL, Trent, Asian Paints, SBI Life, IndiGo and Tata Steel were among the stocks trading higher.
Among the major laggards were Grasim, Bajaj Auto, M&M, Hindalco and ONGC.
On the BSE, Infosys, Bajaj Finance, Eternal, Kotak Bank, Hindustan Unilever and IndiGo were among the major gainers, while Sun Pharma and M&M were among the major losers.
Crude Oil and Gold Prices
In the commodities market, Brent crude was trading at around $91.95 per barrel, while crude oil was around $84.53 per barrel.
Gold was trading at approximately $4,497.95 at the time of reporting.
