Stock markets rebound in early trade; Sensex jumps over 500 points

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A screen displays market results outside the Bombay Stock Exchange (BSE) in Mumbai | Photo Credit: Reuters

Benchmark equity indices Sensex and Nifty rebounded in early trade on Thursday (August 20, 2026), tracking a recovery in world markets as easing US Treasury yields improved global risk sentiment.

Fresh foreign fund inflows also added to the markets' optimism during the initial trading.

The 30-share BSE Sensex jumped 504.32 points to 77,416.16 in early trade after four days of decline.

The 50-share NSE Nifty also bounced back after seven days of losses. It climbed 118.85 points to 24,198.55.

"Indian equity markets are expected to trade with a firmer undertone, supported by an overnight rebound on Wall Street and gains across Asian markets after easing US Treasury yields improved global risk sentiment.

"While the recovery in overseas equities offers a constructive backdrop, persistent geopolitical uncertainty in the Middle East is likely to keep investors cautious," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.

All 30 Sensex firms were trading in positive territory during the early deals. Eternal, Infosys, Tech Mahindra, Bajaj Finance, Tata Consultancy Services and HCL Tech were among the biggest winners.

Foreign Institutional Investors (FIIs) bought equities worth ₹407.99 crore on Wednesday, according to exchange data.

In Asian markets, South Korea's Kospi rebounded 5.74%. Japan's Nikkei 225, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were also quoting higher.

"US indices halted a three-day losing streak after the US Treasury announced plans to more than double long-dated debt buybacks, pulling the 10-year Treasury yield down to 4.65%. The S&P 500 gained 0.21%, the Nasdaq Composite rose 0.16%, and the Dow Jones Industrial Average added 120 points," Rajesh Palviya, Head of Research at Axis Direct, said.

Brent crude, the global oil benchmark, traded 0.20% higher at $91.87 per barrel.

"The decline in US bond yields indicates a positive potential construct for equity markets, globally," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.