Sensex, Nifty rebound sharply today as trade-war fears ease; short-covering lifts markets after 3-day fall

Share Market Today: Sensex, Nifty Update

• Sensex and Nifty rebounded nearly 1 percent, ending a three-day losing streak
• Global cues improved as US-Europe trade tensions eased, boosting markets
• Metals, pharma, PSU banks, and autos led sectoral gains in early trade

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Indian equity benchmarks opened sharply higher on Thursday, with Sensex and Nifty snapping a three-session losing streak and rising just under 1 percent, as global risk sentiment improved and the US-Europe trade tensions eased. The rebound was driven by strong gains on Wall Street, a relief rally across Asian markets and aggressive short-covering after the Sensex and Nifty slipped close to key long-term support levels in the previous session.

At around 09:44 am, the Sensex was up about 0.9 percent, or over 700 points, while the Nifty gained nearly 1 percent, recovering to around the 25,390 level. Market breadth was decisively positive, with advances far outnumbering declines, signalling broad-based participation in the early rebound after days of sustained selling pressure.

The positive opening follows a sharp turnaround in global cues. Wall Street logged its strongest one-day rally in nearly two months on Wednesday after US President Donald Trump stepped back from tariff threats against European nations and indicated that a framework agreement on Greenland had been reached. The S&P 500, Dow Jones and Nasdaq all rose over 1 percent, reversing the previous session’s steep losses and easing fears of an imminent US-Europe trade war. Asian equities followed suit on Thursday, reinforcing the risk-on mood.

Market participants also pointed to positioning as a key driver of the morning move. “The withdrawal of tariff threats takes away the immediate risk of a US-Europe trade war, which was dragging markets down,” said VK Vijayakumar. He added that the relief rally could be significant due to heavy short positions built up over the last few sessions, even as investors continue to monitor earnings trends and global developments.

Technically, analysts say the rebound is coming at an important juncture. After slipping below its 200-day moving average on Wednesday for the first time in eight months, the Nifty is now attempting to stabilise above the 25,200-25,300 zone. “The failure of upswing attempts near 25,300 earlier keeps the downside risk alive, but the doji formation near the 200-day average may allow a phase of consolidation,” said Anand James, noting that a sustained move above 25,300-25,350 would be needed for a more durable recovery.

Sectorally, the early rally was led by metals, pharma, PSU banks and autos, while broader midcap and smallcap indices also posted strong gains after recent underperformance. Volatility eased marginally, with India VIX slipping from recent highs, though it remains elevated enough to suggest choppy conditions ahead.

However, despite the sharp opening bounce, analysts sounded a note of caution. Persistent foreign institutional investor selling, currency weakness and mixed Q3 earnings trends remain medium-term headwinds. For now, markets appear set for a relief-led rebound and possible consolidation. Global cues and follow-through buying are expected to dictate whether the recovery can sustain.

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