Why is the Sensex up nearly 700 points today? Here's what's lifting markets

The Sensex rose nearly 700 points and the Nifty climbed above 24,250 on Thursday. The rebound followed softer global cues, lower US bond yields and renewed buying in banking and IT shares.At around 1:25 pm, the Sensex was up 668.92 points, or 0.87%, at 77,578.60. The Nifty 50 gained 168.90 points, or 0.70%, to trade around 24,247.Domesticstock markets staged a sharp comeback on Thursday, with the Sensex jumping nearly 700 points and the Nifty moving above 24,250 as investors returned to beaten-down banking and IT stocks after a bruising seven-session losing streak.At around 1:25 pm, the Sensex was up 668.92 points, or 0.87%, at 77,578.60. The Nifty 50 gained 168.90 points, or 0.70%, to trade around 24,247.The rally comes after the Nifty fell for seven consecutive sessions, losing 2.1% over that period, while the Sensex had dropped in six of the previous seven sessions.Thursday's rebound was driven by a mix of improving global sentiment, a fall in US bond yields and buying in heavyweight financial and IT stocks. GLOBAL CUES IMPROVEOne of the biggest triggers came from global bond markets.The US Treasury's move to increase buybacks of longer-dated government debt helped calm concerns about rising bond yields. Lower yields generally improve the appeal of equities, particularly in emerging markets such as India, by reducing the attractiveness of safer fixed-income investments. Asian markets also moved higher, giving domestic investors a positive cue.A softer US dollar added to the improvement in sentiment. The rupee also strengthened slightly during the session, aided by the broader decline in the dollar and RBI intervention.BANKS AND IT LEAD THE BOUNCEHeavyweights in the financial and IT sectors were among the biggest contributors to the market's rise.HDFC Bank was up 0.74%, ICICI Bank gained 0.60%, Axis Bank rose 1.13% and Kotak Mahindra Bank jumped 2.25%, based on the latest market data.IT stocks also recovered after recent weakness. Infosys climbed 1.44%, TCS gained 0.64%, while Wipro rose 0.74%.Bajaj Finance, Bharti Airtel, Larsen & Toubro, Maruti Suzuki and Mahindra & Mahindra were also among the major stocks trading higher.RALLY AFTER 7 DAYS OF LOSSESPart of Thursday's rally may also be explained by how much the market had fallen before it.The Nifty had struggled to find momentum as elevated crude oil prices, geopolitical concerns and rising global bond yields kept investors cautious. After seven straight sessions of losses, the index found support around the 24,000 level, encouraging bargain buying and short covering.Short covering happens when traders who have bet on prices falling buy shares to close their positions. That buying can add momentum to a market rebound.The recovery was also broad-based, with most major sectors trading higher. That suggests Thursday's gains were not being driven by just a handful of heavyweight stocks.RISKS REMAINThe sharp rebound does not necessarily mean the market's recent problems are over.Crude oil prices remain elevated, which is particularly important for India as it imports a large part of its oil needs. Geopolitical tensions in West Asia and uncertainty over global interest rates also remain key risks for investors.For now, however, Thursday's rally marks a clear change in mood after a week of relentless selling. With the Sensex up nearly 700 points and the Nifty back above 24,200, investors are responding to better global cues, lower bond yields and a rebound in banking and IT heavyweights.Whether the bounce can last will depend on whether those global pressures, particularly crude oil prices and geopolitical risks, begin to ease.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsPublished By: Koustav DasPublished On: Aug 20, 2026 13:34 IST