FX.co ★ Sensex Rebounds on Thursday

India's BSE Sensex managed to recover from early losses to finish approximately 0.3% higher at 82,566 on Thursday, continuing its upward trend for the third consecutive session. Market confidence was buoyed by a favorable economic survey, which underscored promising growth projections for fiscal year 2027 and a stable inflation environment in preparation for the upcoming federal budget at the weekend. However, the extent of the gains was limited by ongoing concerns surrounding persistent foreign capital withdrawals, a depreciating rupee, uneven corporate earnings, and renewed geopolitical tensions between the US and Iran. Financial sector heavyweights, initially down, spearheaded the market's recovery with a 0.6% increase, while private banks climbed by 1%. The metals sector experienced a surge, with Tata Steel advancing by 4.6% due to anticipated strong commodity-driven profits. Larsen & Toubro saw a 3.6% rise following a reaffirmed positive long-term earnings forecast despite falling short in quarterly profit margins. In contrast, the FMCG, IT, and automobile sectors underperformed, with Asian Paints dropping 3.7% and Maruti Suzuki declining 2.7% after both companies reported lower-than-expected quarterly profits.