Stock market today: After Wednesday’s disappointment, Dalal Street was brighter on Thursday. Huge buying was seen in the stock market today. Benchmark indices Sensex and Nifty made a spectacular recovery and gave investors a huge opportunity to profit. Today the Sensex surged by over 1500 points to touch 74,315. Nifty on the other hand has not looked back either. The Nifty surged over 374 points to close to 23,000. IT, banking and consumer stocks were the biggest contributors behind this bounce back in the market. There was heavy buying in these sectors, due to which the market mood became entirely positive.

Top gainers on the Sensex include TCS, Tech Mahindra, Infosys, Bharti Airtel, ICICI Bank, Axis Bank and ITC. However, amid this bumper rally, some stocks also disappointed investors. Shares of BEL, Adani Ports, Trent, Power Grid, SBI, L&T and NTPC declined.

Strong performance of IT stocks

The biggest reason for this huge surge in the market was the excellent performance of the IT sector. Shares like TCS, Infosys, HCL Tech and Tech Mahindra closed higher for the third consecutive day. Good results have boosted investor confidence in these companies. Apart from this, the sale of Artificial Intelligence (AI) related stocks in the American market has also seen a positive impact on the Indian market.

According to VK Vijayakumar, chief investment strategist at Geojit Investments, the correction in AI stocks is good news for India. Foreign investors (FIIs) who used to sell Indian stocks and buy American AI stocks can now buck the trend. If conditions remain favourable, foreign money may come back into the Indian market.

Relief from decline in crude oil

Another major factor supporting the market is the decline in crude oil prices. Crude oil prices fell by more than a dollar on Thursday. Brent crude oil fell 1.76 dollars to 104 dollars per barrel. At the same time US crude (WTI) also fell $1.02 to $94.07. The Indian economy benefits a lot due to the cheapness of oil, which has a direct impact on stock market sentiment.

A strong rupee provided support

The strengthening of the Indian rupee against the dollar also boosted the market sentiment. The Indian rupee opened at 94.92, up 0.2 percent from the previous close. The rupee has received a significant boost due to the weakening of the dollar in the international market. Experts believe that the dollar is currently showing a downward trend. However, it is advised to avoid creating new long positions until the market stabilizes completely.

Effect of Short Covering on Expiry Day

Today 15th October was also the weekly expiry of Sensex. The market often experiences sharp fluctuations on the day of expiry. Traders determine their positions. This short covering also helped the index move up.

While large cap stocks led the market to new highs on the one hand, the broader market witnessed some weakness. Smallcap and microcap indices were down 1.5 percent. In the Nifty Smallcap 250 index, stocks such as MTAR Technologies, NetWeb Technologies and CEAT fell as much as 6 percent.