Sensex rebounds over 450 points after selloff; Nifty reclaims 24,000 as investors buy the dip

New Delhi: Benchmark equity indices recovered sharply in early trade on Thursday, with the Sensex rising more than 450 points and the Nifty climbing back above the 24,000 mark, as investors returned to beaten-down stocks after Wednesday's steep selloff. The rebound comes a day after Dalal Street witnessed one of its sharpest declines in recent months, when the Sensex plunged 1,677 points and the Nifty lost more than 500 points amid escalating geopolitical tensions in West Asia and a surge in crude oil prices. Nearly ₹8 lakh crore of investor wealth was wiped out in Wednesday's rout. Market sentiment improved on Thursday as bargain buying emerged across large-cap stocks after the previous session's heavy correction. Traders also took comfort from the absence of fresh negative global triggers, although volatility remained elevated. The previous day's selloff was triggered by renewed concerns over the US-Iran conflict after US President Donald Trump declared the ceasefire arrangement with Iran effectively over, raising fears of prolonged geopolitical instability. The developments pushed global crude oil prices higher, a key concern for India, which imports the bulk of its crude requirement. Rising oil prices are expected to increase inflationary pressures, widen the current account deficit and squeeze corporate margins, particularly for sectors dependent on fuel and raw material costs. Analysts said Thursday's gains reflected a technical recovery rather than a decisive change in market sentiment. Investors are expected to remain cautious as they monitor geopolitical developments, crude oil prices and the start of the June-quarter earnings season, with IT major Tata Consultancy Services among the first large companies scheduled to announce its results. Despite the recovery, market participants said the near-term outlook remains sensitive to global cues. Any further escalation in the West Asia conflict or a sustained rise in crude oil prices could keep equity markets volatile in the coming sessions.