Indian Stock Market: Reliance Powers a Resilient Recovery Amid Global Concerns

The Indian stock market showed remarkable resilience on Wednesday, with key indices rebounding from early losses to close on a stable note. Heavyweights like Reliance Industries led the recovery, cushioning the impact of weak global cues, including a sell-off in US tech stocks and concerns over a delayed US Federal Reserve rate cut in 2025.
Oil & Gas Stocks Shine Bright
Amid rising crude oil prices, the oil and gas sector stood out as the star performer. Expectations of higher margins due to surging crude prices boosted investor sentiment, contributing significantly to the market’s recovery.
Market Overview
Despite the initial drag, gains in IT stocks, a strong rebound in ITC shares, and a rally in banking stocks helped the indices recover. The Nifty 50 closed almost flat, down by just 0.08% at 23,688, rebounding 192 points (0.81%) from the day’s low. Similarly, the Sensex saw a recovery of 666 points (0.86%) from its lowest point to end with a marginal loss of 0.06%.
However, the broader market faced significant selling pressure. The Nifty Smallcap 100 index fell by 1.65% to close at 18,365, while the Nifty Midcap 100 index dropped 1.05% to settle at 56,270.
Expert Insights
Vinod Nair, Head of Research at Geojit Financial Services, attributed the day’s volatility to slowing economic growth projections and caution ahead of Q3 earnings. “The recovery was driven by the accumulation of beaten-down blue-chip stocks and expectations of government reforms in the upcoming budget to boost the economy,” he said.
He also cautioned about near-term challenges, citing rising US bond yields and a potential delay in Fed rate cuts.
Reliance Industries Shines
Reliance Industries posted its best single-day gain in over six weeks, closing 2% higher at ₹1,265 per share. The stock rebounded strongly after a 22.4% correction over the past six months. Global brokerage Jefferies upgraded its target price for the stock to ₹1,950 from ₹1,295, citing attractive valuations, while Bernstein maintained its ‘outperform’ rating with a target of ₹1,520.
Jefferies highlighted medium-term growth challenges, particularly in the retail segment, but expressed optimism about the stock’s valuation being at its cheapest since the COVID-19 pandemic. Bernstein predicted a recovery in 2025, driven by growth in telecom and retail segments alongside improving refining margins.
Technical Trends: Key Levels to Watch
Vatsal Bhuva, Technical Analyst at LKP Securities, noted that Nifty is trading in a range of 23,500 to 24,200. “A hammer candlestick formed on the daily chart near the 200-day EMA reinforces the 23,500-support level,” he said.
He added that a decisive break below 23,500 could trigger further selling pressure, while sustaining above 24,000 could lead to a rally towards 24,500.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, echoed similar views. “As long as the market holds above 23,500, the pullback rally is likely to continue, with potential upside targets of 23,800 to 23,925. However, a breach below 23,500 could shift sentiment negatively,” he said.
The market’s ability to hold key support levels amid global headwinds reflects underlying strength, with Reliance Industries and oil & gas stocks playing pivotal roles in today’s recovery. Investors are now eyeing upcoming corporate earnings and budget announcements for further direction.