Indian stocks rebounded on September 29, 2023, after touching a four-week low in the previous session. The benchmark Nifty 50 index rose 0.5% to close at 17,325.95, while the Sensex index gained 0.6% to close at 58,280.68.
The rally was led by gains in IT, metal, and financial stocks. Infosys, Wipro, and TCS were among the top gainers on the Nifty 50 index, while Tata Steel, JSW Steel, and HDFC Bank were among the top gainers on the Sensex index.
Analysts attributed the rally to a combination of factors, including positive global cues, a decline in the rupee, and short-covering. Global markets were mostly higher on September 29, with the S&P 500 index rising 0.7% and the Nasdaq Composite index gaining 1.3%.
The rupee fell to a record low of 81.50 against the US dollar on September 29, which made Indian exports more competitive. A weaker rupee is also generally positive for Indian stocks, as it makes them more attractive to foreign investors.
Finally, analysts also said that some short-covering may have contributed to the rally. Short-covering occurs when investors who have bet that a stock will fall are forced to buy the stock back in order to cover their losses.
Overall, the rally on September 29 was a positive sign for Indian stocks. However, it is important to note that the market is still volatile and investors should be cautious.