The stock market witnessed a sharp recovery on Thursday, October 15, as key domestic indices Sensex and Nifty rebounded robustly in early trade following a previous session drop, fueled by buying in IT counters and declining crude oil prices, placing the BSE Sensex higher by 1.33 per cent or 971.25 points at 73,753.14 and Nifty50 higher by 1.22 per cent or 276.90 points at 22,899.60 by roughly 10:17 AM, with major upward contributions from Tata Consultancy Services, Tech Mahindra, Infosys, ICICI Bank, Axis Bank, and Bharti Airtel, while international Brent crude slumped 1.60 per cent to trade at USD 104.4 per barrel below the $105 mark; analyzing the broader economic climate, V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, pointed out that US inflation jumping from 3.4 per cent to 3.7 per cent in September elevates the risk of an October Fed rate hike, setting off steep sell-offs in the US tech sector with Nasdaq correcting 1.88 per cent and affecting South Korea and Japan, but noted that this correction acts as a positive catalyst for Indian equities by potentially stopping or reversing the recent trend of FII sell-offs—after foreign investors offloaded equities worth Rs 1,857.44 crore on Wednesday—while strong results from HCLTech keep the domestic IT sector resilient and attractive.
