Indian shares rebound as Reliance and metals lead gains

Indian equity benchmarks snapped a three-day losing streak on Thursday, bolstered by a recovery in heavyweight stocks and a shift in global risk appetite. The Nifty 50 climbed 1.17% to reach 24,765.90, while the BSE Sensex rose 1.14% to settle at 80,015.90. This turnaround followed a volatile period where markets fell approximately 4% due to escalating geopolitical tensions in the Middle East. The market sentiment in India was supported by a broader rally across Asia. The MSCI index for Asia-Pacific shares, excluding Japan, rose 2.6% after a significant three-day decline. Investors had previously retreated following military developments involving the United States and Israel against Iran, which had sparked fears of rising inflation and disrupted energy supplies. Reliance Industries Limited led the domestic recovery, jumping 3.3% after losing nearly 4.5% in the preceding sessions. Market analysts noted that the recent selloff in the conglomerate's shares appeared overdone, prompting a relief rally. > Todays market uptick is a temporary bounce, driven largely by Reliance rebounding from its sharp recent slide. Anita Gandhi, head of institutional business at Arihant Capital Markets, observed that as an index heavyweight, the snapback in Reliance provided the necessary momentum for the broader benchmarks. This recovery also pushed the energy and oil and gas sectors higher by 1.9% and 1.6%, respectively. The metal sector also outperformed, with the index rising 2.3% on the back of surging aluminium prices. Hindalco Industries Limited gained 3.6%, while National Aluminium Company Limited surged 6%. These gains were triggered by supply anxieties after ALUMINIUM BAHRAIN BSC, located in Bahrain, suspended shipments due to a shipping freeze in the Strait of Hormuz. Meanwhile, Brent Crude Oil prices increased by 1.9% to $82.9 per barrel. While higher energy costs are generally viewed as a headwind for the Indian economy, markets found some relief in recent diplomatic commentary. > (Todays rise) is more due to attractive valuations after the recent selloff and on easing fears of any immediate squeeze on crude supply after the U.S. Presidents comments that crude flows will be protected. Despite the daily gains, market participants remain cautious. Out of 3,336 stocks traded on the NSE, 2,210 advanced while 1,039 declined, indicating broad-based participation in the recovery. However, analysts suggest that volatility is likely to persist as long as the conflict in the Middle East remains unresolved.