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Indian equity markets rebound as IT stocks offset volatility
Indian equity markets experienced significant volatility and a subsequent recovery during the final week of August 2026. Following a sharp decline on Thursday, August 27, driven by selling in blue-chip stocks like HDFC Bank and geopolitical uncertainty, the Sensex and Nifty rebounded on Friday. This recovery was primarily fueled by a rally in the IT sector, which gained momentum from positive global technology sentiment and Nvidia’s strong quarterly results.
The market volatility was exacerbated by the introduction of the new Closing Auction Session (CAS) for futures and options (F&O) stocks. During the monthly derivatives expiry on Thursday, the BSE Sensex saw sharp, rapid price swings in the final minutes of trading, including a brief nearly 3% plunge before recovering. This has raised concerns among market participants regarding liquidity risks and price discovery under the new market structure.
Investors remain cautious as they await further guidance from the US Federal Reserve, specifically comments from Chair Kevin Warsh at the Jackson Hole Symposium, which may influence global interest rate trajectories and capital flows into emerging markets.
Entities
BSE · BSE Sensex · India · Infosys · Kevin Warsh · NSE · NSE Nifty 50 · Nifty · Nvidia · Sensex · Tata Consultancy Services · Tech Mahindra
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The Nifty IT index rose more than 1 per cent.
- [● 2 SOURCES] Financial services and banking sectors faced downward pressure. www.chinimandi.com · www.news18.com
- [● 2 SOURCES] Nifty crossed the 24,100 mark in early trade. www.chinimandi.com · www.news18.com
- [○ 1 SOURCE] Nvidia's quarterly results and guidance supported global technology sentiment. www.news18.com
- [● 2 SOURCES] Information technology stocks led the market gains. www.news18.com
- [○ 1 SOURCE] Investors are awaiting remarks from US Federal Reserve Chair Kevin Warsh.
- [○ 1 SOURCE] Brent crude was trading around USD 88.20 per barrel. www.chinimandi.com
- [○ 1 SOURCE] Sensex opened at 77,128.05, up 0.41 per cent. www.chinimandi.com