The NSE Nifty was up by 0.71% or 157 points to 22,194.50, while the BSE Sensex was at 73,153, up by 0.55% or 393.23 points. A total of 3,917 stocks were actively traded; 2,692 advanced, 1,126 declined, and 99 stocks remained unchanged. At 1.35 pm on Thursday, 66 stocks hit a 52-week high, and 166 stocks hit a 52-week low.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The lesson from market history is that frothy valuations are unsustainable. Therefore, yesterday’s blood bath in the broader market is hardly surprising to sane minds in the industry. Investors should appreciate the following facts: The Nifty Smallcap index is down 13.5%, and the Midcap index is down 6.8% from their respective peaks. But the Nifty is stable with a minor cut of only 2.1%.

The broader market can correct more since valuations continue to be elevated. Investors should now focus on large-caps and quality midcaps. The market turbulence will give cherry-picking opportunities. From now on, irrational exuberance will take a back seat, and rational valuations and quality will be the driving force.

High-quality private sector banks and the leading names in capital goods, telecom, and autos can be accumulated in a calibrated manner. It is important to understand that India’s macro fundamentals continue to be good, and the bull market is intact.”

Major gainers on the NSE include Adani Enterprises (6.22%), Adani Ports (4.56%), Hindalco (3.18%), Hero Motocorp (2.48%), L&T (2.24%). Major losers include, JSW Steel (-1.06%), Tata Steel (-0.49%), Dr Reddy’s Lab (-0.38%), Axis Bank(-0.27%), HDFC Bank (-0.25%)

BSE Smallcap was up by 3.03%, and Midcap was up by 1.87%, indicating gains.